The Market Bull – January 28, 2019
Despite some generally positive economic data, some significant earnings misses spooked the markets to begin the week as they closed with large losses.
The Chicago Fed National Activity Index advanced to +.27 in December. The subcomponents were mixed, 2 gained, 2 fell.
The 3-month moving average advanced slightly to +.16 as the series indicates more moderate economic growth, much like the Beige Book.
The Dallas Fed regional index advanced 6.1 points in January to 1 on strength in capacity utilization and shipments.
New orders and employment data fell. Price data moderated but remains high.
With the government shutdown officially over with a negotiated 3-week truce the net effects are still being tabulated but it is expected to shave about .2% off Gross Domestic Product or GDP during the 1st quarter. Data delays have also caused insight as to the condition of the economy to go dark and potential negative surprises wait as the reports catch up. Again the process exposes the dysfunctional state of our leadership something that will continue to prove a challenge going forward as partisan politics through confrontation sets an acrimonious tone.
Standard and Poors 500 Index closed at: 2,643.85 down 20.91
NASDAQ finished the day: 7,085.68 down 79.18
Gold ended trading at: $1,303.20 up $5.10