The Market Bull – September 24, 2019
The markets were none to thrilled with Trump’s UN speech as they fell steadily in late trade, finishing with large losses as consumer confidence slips.
State Level Personal Income gained a respectable 1.3% in the 2nd quarter and 5.4% annualized. The first quarter was revised significantly higher hitting 6.2%. At the regional level the Southwest set the pace with a 1.7% gain followed by the Far West up 1.5%. At the other end of the scale The Plains trailed with an anemic 1% advance. By income type gains were strong across the board, wages advanced 4.4% while dividends and rent increased 8%.
The Richmond Fed regional index beat expectations in September despite a 10-point fall to -9. New orders plunged 16 points to -14, the average workweek cratered to -10.
Problems in the short-term Repo market persist with the latest round being substantially oversubscribed pushing rates sharply higher as they reached 9% in some cases. An alarming level as it implies that demand for short term, usually overnight, funding is dramatically higher than supply. On Friday, the Fed pledged to allow roughly two more weeks of overnight repo transactions, each injecting around $75 billion daily into the economy, per the Federal Reserve Bank of New York. Granted there are a few extenuating circumstances here, nonetheless it is well worth watching closely as similar things occurred in late 2007.
Standard and Poors 500 Index closed at: 2,966.60 down 25.18
NASDAQ finished the day: 7,993.63 down 118.83
Gold ended trading at: $1,539.90 up $8.40