The Market Bull – November 15, 2019
The major averages closed with modest gains to wrap up a solid week. The Fed’s Repo Market driven liquidity, aka QE 4 helped to set new record highs. Since Monday the Standard and Poors 500 Index advanced 40 points or 1.3% while the NASDAQ gained 110 points or 1.3% as well.
Retail sales bounced back in October with a .3% gain. Strong sales were seen at gasoline stations, internet retailers and auto dealerships. On a year ago basis sales are up a respectable 3.1%. Declines were led by apparel, furniture stores, sporting goods and hobby stores.
Trade prices fell again in October marking a 3rd decline in the last 6-months. Export prices slipped .1% for the month and 2.2% from a year ago. Import prices dropped .5% for the month and 3% from a year ago. Year ago price data has fallen for 6 consecutive months. With the Fed’s decision on interest rates tied to the economic and inflation data one wonders if the Fed will cut again in December as both data sets are clearly softening. While nothing to panic about yet, the trend is decidedly negative.
Industrial Production fell hard in October dropping .8% a figure double the expected decline. While the GM autoworkers strike hit the topline hard for a second month, weakness was broad-based. Capacity utilization slipped almost a point to 76.7% a 25-month low.
Standard and Poors 500 Index closed at: 3,120.46 up 23.83
NASDAQ finished the day: 8,540.83 up 61.81
Gold ended trading at: $1,467.40 down $6.00
It would seem that the markets care little about the trade war, Trump’s impeachment, or the ongoing dramas with the Repo market, closing about even.
The major averages finished mixed. The latest rumored trade deal fails again, but the markets don’t seem to care. Powell says negative rates are inappropriate.
The major averages closed with small gains on little real news. The Fed’s Repo Market Operations continue as the Balance Sheet breaks 4 trillion again.
The major averages closed with decent gains on mixed economic data. Rumors circulate of another trade war settlement, but I think it’s doubtful at best.
The yield curve officially un-inverts after the Fed pushed the short end of the curve lower with its rate cuts. Profits continue to come in weak.
Major averages finish about even. 4th quarter earnings are tracking a 2.7% decline and look to mark a 3rd consecutive quarter of falling earnings.
Despite generally disappointing economic data and yet another mirage trade deal with the Chinese. The major averages began the week with modest gains.
The major averages finished with large gains with the media trumpeting the jobs report as it beat expectations, despite the fact that it is fairly weak.
With doubts about the latest trade war settlement making the rounds again the major averages fell in early trade, closing with small losses.
The major averages finished with small gains after the Fed cut rates for a 3rd time as expected. The impeachment process continues.