Registered Investment Adviser Caleb Lawrence
Dreams of the Republican Tax Plan sent the major averages into the final hour with large gains on generally positive data. That said the tax plan faces its final vote tomorrow and its odds aren’t good especially in its current bastardized form that represents another trickle down, debt laden handout for the 10% and corporations at the expense of everyone else, while promising economic growth unlikely to materialize.
The Personal Consumption Expenditures or PCE Deflator gained .1% in October on a big decline in energy prices. The year ago rate slipped to 1.6% remaining below the Fed’s stated 2% target. Personal Income advanced .4% led by gains in rental and asset income. On a year ago basis disposable income advanced 2.5% while the savings rate came in at 3.2%. Personal Spending increased just .1% in October as the hurricane bounce faded, as per the Bureau of Economic Analysis.
Agricultural prices fell for a 4th consecutive month in September down 1.7% on notable declines in livestock, dairy, feed grains and hay.
Semiconductor billings increased 2.8% in September on strength in the Americas and to a lesser extent Asia and Europe.