The Market Bull – July 29, 2019
The major averages begin the week mixed on little news. Another attempt at resolving the Chinese trade war is likely to go nowhere, again.
The Texas Manufacturing Index spent a 3rd month in the red despite a 5.8-point gain to -6.3 in July. Improvement was seen in production, new orders and employment. Price data was mixed.
The latest attempt at resolving the trade dispute with China hints that a solution is a long way off after Trump indicated it would occur after his reelection. As ever Trump is long on bravado and rhetoric, actually delivering tangible results is another matter.
It’s a busy week for earnings, with 168 S&P 500 companies reporting this week. Of the 208 companies in the S&P 500 which have reported so far, 78% have beat on earnings, and 59% have beat on sales. Guidance has been quite negative and there have been a number of notable misses. Wednesday will almost certainly feature a Fed rate cut, something many figure will herald a recession. At this time markets put the probabilities at 82.5% for a ¼% cut and 17.5% for a larger ½% cut. The economic reporting calendar is also very busy with PCE Data, Vehicle Sales, Employment, Construction and Manufacturing reports all on tap amongst others.
Standard and Poors 500 Index closed at: 3,020.97 down 4.89
NASDAQ finished the day: 8,293.33 down 36.88
Gold ended trading at: $1,426.70 up $7.40