The Market Bull – September 17, 2019
The major averages closed with small gains on a last-minute charge. The damage to Saudi oil facilities may not be as bad as originally thought.
Seems the Federal Reserve is following in the ECB or European Central Banks footsteps with its first Repo operation in over 10-years. The 53.2 billion operation was beset by technical difficulties early on and concluded with primarily Treasuries and to a lesser extent Agency issues as collateral. One wonders just how much of a liquidity shortfall the Fed saw, and how long before it starts full on QE or Quantitative Easing again. Aka, print money and buy stuff, just like the Europeans.
Industrial Production handily beat expectations in August with a .6% advance on strength in mining, business equipment and high tech. Motor vehicle and parts production posted its 3rd materially negative reading in the last 6-months. Capacity utilization increased to 77.9%.
State and Local Tax Revenue jumped in the 2nd quarter advancing 8.3% on a year ago basis, handily beating expectations and helping to offset the weakness seen in the previous 2 quarters. Individual income tax receipts were particularly strong, and to a lesser extent corporate tax. Of note, California reported a significant drop in sales tax receipts during the 2nd quarter.
The Treasury International Capital or TIC report was strong again in July advancing 84.3 billion as foreigners proved willing and enthusiastic buyers of Agency Bonds and Equities. Treasuries were also fairly popular, while Corporate Bonds saw small net sales.
Standard and Poors 500 Index closed at: 3,005.70 up 7.74
NASDAQ finished the day: 8,186.02 up 32.47
Gold ended trading at: $1,509.50 up $2.00The major averages closed with small gains on a last-minute charge. The damage to Saudi oil facilities may not be as bad as originally thought.