The Market Bull – November 16, 2018
The major averages finished the day mixed despite generally positive data. Tech took another beating. Since Monday the Standard and Poors 500 Index has lost 38 points or 1.4% while the NASDAQ has slipped 116 points or 1.6%.
Industrial production missed expectations with a .1% gain in October on a big drop in motor vehicle and parts production. Mining and utilities also slipped. Capacity utilization fell fractionally to a still high 78.4%. Once again tariffs were cited as a significant concern going forward.
Regional and state level employment data for October has the South Atlantic and Mid-Atlantic regions setting the pace for employment growth with a .3% gain each for the month. On a year ago basis the Mountain region has shown job growth of a respectable 2.9%. At the state level Hawaii had the lowest level of unemployment at just 2.3% while Alaska was highest at 6.4%
The Kansas City Fed regional index jumped 7 points to 15 in November on strength in production and new orders. Employment slipped a little, price data increased.
The September Treasury International Capital Flows or TIC reports showed net purchases of securities of 30.8 billion for the month. Agency bonds and to a lesser extent corporate bonds were popular, stocks or equities sold off for a 5th consecutive month. Treasury notes and bonds saw net sales for a 3rd time in the last 6 months. This series shows net foreign purchases running some 50 billion per month despite the trade war and some pretty ham-fisted foreign policy.
Standard and Poors 500 Index closed at: 2,736.27 up 6.07
NASDAQ finished the day: 7,247.87 down 11.16
Gold ended trading at: $1,221.90 up $6.90
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