The Market Bull – May 1, 2019
The major averages closed with modest losses after the Fed decided to leave rates unchanged. Forward guidance was neutral, previously negative.
Wards Auto reported a 6.3% drop in auto sales during April to 16.4 million units annualized, far below expectations. Pain was fairly widespread with both cars and trucks declining. Surprisingly imported auto sales held up despite a notable decline in domestic sales. All major manufactures reported sales declines.
Construction spending disappointed in March as well snapping a string of 3 consecutive gains with a .9% decline on weakness in residential and public construction. Commercial construction showed a small gain. On a year ago basis construction spending is down .8%, January and February were revised lower.
Manufacturing activity also missed, with the Institute for Supply Management reporting that its Manufacturing Index fell 2.5 points to 52.8 in April. Weakness was noted in new orders and employment as the series continues its downward trend since September of last year. Price data was neutral at 50, as it more or less has been in the last 4-months.
Standard and Poors 500 Index closed at: 2,923.73 Down 28.60
NASDAQ finished the day: 8,049.64 down 83.29