The Market Bull – June 27, 2019
Rumors of an imminent trade war truce with the Chinese helped the major averages close with modest gains. I’ll believe it when I see it.
Final First Quarter Gross Domestic Product or GDP came in as expected at 3.1%. Minor revisions were made to consumer spending, inventories and foreign trade. The inflation measuring Implicit Price Deflator was a very low .64% during the First Quarter a fraction of the rate seen in previous quarters. Despite a number of quarters of solid GDP growth in the 3% range the 2nd quarter is tracking below 2% currently.
The National Association of Realtors Pending Home Sales index advanced 1.1% in May to 105.4. All regions advanced for the month except the West as it fell 1.8% for a second consecutive month. On a year ago basis this series is .7% lower and has been running in the red for some time now.
Continuing the recent trend of regional manufacturing indexes falling sharply to negative or near negative levels the Kansas City Fed Index slipped 4-points in June to zero on weakness in Production and Employment, New Orders improved slightly to 5. Price data fell notably and is barely positive.
Standard and Poors 500 Index closed at: 2,924.92 up 11.14
NASDAQ finished the day: 7,967.76 up 57.79
Gold ended trading at: $1,411.60 down $3.80