The Market Bull – September 20, 2019
The major averages closed with modest losses, unable to hold their early gains. Data from the Treasury showed household finances continuing to improve. For the week the Standard and Poors 500 Index gave up 4 points as did the NASDAQ, with both indexes closing almost unchanged.
The Federal Reserve’s 2nd Quarter Flow of Funds Report showed household net worth increasing to 113.5 trillion in the 2nd quarter. Debt advanced 4.3% during the period in question. Household percent equity slipped fractionally to 64.2%.
CoreLogic reports that homes with negative equity fell 7% in the 2nd Quarter to 2-million properties. On a year ago basis negative equity properties decreased by 9%. At the state level Louisiana was the worst with 10.3% of properties underwater. At the other end of the scale Washington had just 1.5% of properties with negative equity. California was tied for ninth place with 2.1% of properties underwater.
This graph from CoreLogic shows the percent negative equity by states.
Standard and Poors 500 Index closed at: 2,992.07 down 14.72
NASDAQ finished the day: 8,117.67 down 65.21
Gold ended trading at: $1,524.40 up $18.20
Despite generally positive data the major averages couldn’t hold their early gains after comments about the trade war flaring up hit the wires once again.
After spending most of the day in the red the Fed’s ¼% reduction in interest rates helped the major averages into the close mixed.
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.
The major averages begin the week in the red after a weekend rocket attack crippled Saudi oil production spooking the markets as, gold, oil and bonds jumped.
The major averages closed mixed unable to hold their early gains. As trade tensions eased once again, another head fake no doubt.
The major averages closed with modest gains on little news. Bolton’s departure from the Whitehouse should increase the odds of a trade war settlement.
The major averages closed with large gains as Trump called for Zero or Negative Interest Rates, labeling Fed Chair Jerome Powell a Naive Bonehead.
The major averages closed mixed on generally disappointing but not very significant data. As Wall Street holds its breath waiting for another rate cut.
The major averages closed with modest gains on mixed data. The Congressional Budget Office warns that tariffs could crimp economic growth.
Despite an extremely volatile week the major averages managed to hold up fairly well, with a strong finish Friday