Registered Investment Adviser Caleb Lawrence
Another day of thin holiday trade sends the major averages into the final hour about even on little news. The trade deficit increased 2.4% to 69.7 billion in November. Exports increased 3%, imports gained 2.7%. That said trade is tracking a sizable drag on 4th quarter Gross Domestic Product estimates or GDP and is currently expected to shave a full point off the top line figure.
Wholesale inventories increased .7% in November on a big jump in non-durable goods. This advance erases all of last week’s decline and then some.
Agricultural prices fell 5.2% in October to mark a 5th consecutive decline, but remain 8.3% higher than a year ago. Large drops were seen in poultry and egg prices and to a lesser extent fruit, oil bearing crops, feed grains, and hay.
A recent piece by John Hussmann on Bitcoin noted the following about crypto currencies, no country requires their use as legal tender and that blockchain technology is both brilliant and exceedingly inefficient at the same time. The inefficiency is so extensive and coupled with constrained scalability that using crypto currencies in day to day transactions is almost impossible from a practical standpoint and may contribute to global warming due to the computing power required, at least in their present form.