The Market Bull – July 16, 2019
The major averages finish about even as the Iran rhetoric gets dialed back considerably. Economic data is mixed and not overly significant.
Trade prices fell hard in June on a large drop in energy prices, and price declines across the board. Import prices slipped .9% for the month and 2% from a year ago. Export prices fell .7% for the month and 1.6% from a year ago. This series does not include the effects of tariffs. The report went on to note, and I quote, “There is no doubt that tariffs are inflationary, but this effect will largely be seen in consumer prices.” So much for our trading partners paying the tariffs for us, as I have said before.
Retail sales posted solid numbers again in June with a .4% gain for the month and 3.4% from a year ago. Sales gains were broad based with the exception of gasoline -2.8% and electronics -.3%. With store closings tracking some 12,000 this year it’s no surprise that they were cited as a primary reason for the difficult sales climate.
Industrial Production was unchanged in June dragged down by a 3.6% decline in utilities output. Capacity Utilization slipped .2% to 77.9%.
The May Treasury International Capital Flows or TIC Report showed a small net gain of 3.5 billion. Treasury Notes and Bonds sold off sharply, and Equites a little. Corporate and Agency Bonds were very popular and helped to drive the small net gain.
Standard and Poors 500 Index closed at: 3,004.04 down 10.26
NASDAQ finished the day: 8,222.80 down 35.39
Gold ended trading at: $1,404.80 down $8.70