The major averages enter the final hour on a down note. Since Monday the Standard and Poors 500 Index is about even, while the NASDAQ has gained about 100 points or 1.3%. As expected the Chinese promptly retaliated with their own set of tariffs on a number of US goods today. For every action there’s an equal and opposite reaction. The Europeans are set to retaliate at the end of the month so pretty soon will have a full-blown trade war from the looks of things. I expect the various inflation measuring price indexes to spike in the coming month’s adding considerable uncertainty to an already unstable economic picture.
The New York Manufacturing Index increased 4.9 points in June to 25 on strength in new orders and employment. The prices paid component actually slipped a little but remains very high at 52.7.
Industrial Production fell .1% in May on weakness in Motor Vehicle and Parts, and to a lesser extent business equipment. The former is most likely due to seasonal retooling.
Regional employment data shows that the West South Central, Pacific and Mountain regions continue to lead on a year ago basis. Other regions are more or less about the same decent but not great employment growth.