The Market Bull – November 29, 2018
The major averages shrugged off their early losses but couldn’t hold their late gains and closed with small losses on mixed data.
The Personal Consumption Expenditures or PCE Deflator increased .2% in October. The year ago rate was unchanged at a modest 2%. As with most of the various price measuring indices much of the gains are being driven by energy costs. October was no exception as this component increased 2.9%. Given the huge decline in oil during November this series could easily be negative next month.
Personal Income advanced .5% in October on a big jump in proprietors or small business income. On a year ago basis income is up a respectable 4.3%. The savings slipped fractionally to 6.2%.
Personal spending advanced .4% in October on strength in other durable goods and recreational spending.
The one disappointment today was the Pending Home Sales report as it missed expectations with the largest decline in 10-months after it fell to 102.1. Weakness was particularly pronounced in the west which marked an 8.9% drop. On a year ago basis all regions were negative, especially the west down 15.3%
Agricultural Prices fell 1.5% in September, a 3rd consecutive decline. On weakness in Poultry and Eggs, Commercial Vegetables, Grains and Meat Animals. On a year ago basis prices are down 4.6%.
Standard and Poors 500 Index closed at: 2,737.80 down 5.99
NASDAQ finished the day: 7,273.08 down 18.51
Gold ended trading at: $1,223.40 down $.20
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