Registered Investment Adviser Caleb Lawrence
The major averages opened higher to begin the week following a narrow victory for the Republican tax plan over the weekend. That said many details remain, and leave a lot to be desired. The plan is by and large another debt funded, trickle down handout for the wealthy and corporations at the expense of the republic and most of its citizenry, all but certain to fail on its promise of economic growth.
November auto sales data came out late Friday, falling for a second month down 3.3% to 17.5 million units annualized, as the hurricane bounce continues to fade. Declines were broad based and on a year ago basis sales fell 1.3%, despite more than $4,000 in incentives per unit sold. Tesla’s numbers continue to struggle as production problems plague the Model 3, deliveries slip, down 18% from a year ago, and competition gains market share and popularity particularly with respect to the Chevy Bolt that seems to be eating the Model 3’s lunch in a big way.
The New York Institute for Supply Management manufacturing index jumped 6.5 points in November on significant gains in employment and sales.
Unlike the regional manufacturing indexes that continue to show strong gains since the summer. Factory orders struggle slipping .1% in October and averaging just .4% growth over the last 8-months. Durable Goods orders show a similar picture.