The Market Bull – August 16, 2019
Despite an extremely volatile week the major averages managed to hold up fairly well, with a strong finish Friday. For the week the Standard and Poors 500 index lost 20.39 points or.7%, while the NASDAQ lost 10.90 points or a fraction of a percent. Surprising results all things considered.
Construction activity missed expectations in July after Starts fell 4% to 1.191 million units annualized. Permits fared better with an 8.4% advance to 1.336 million units annualized. Despite some ups and downs this series hasn’t really gone anywhere for almost a year.
The 2nd Quarter Services Survey Data portend optimism for second-quarter GDP revisions. U.S. selected services’ total revenue for the second quarter of 2019 was up 1.3% from the previous quarter and up 5.4% from a year earlier. While consumer spending accounts for some 70% of total economic activity, much of that goes on services. An encouraging report, something that has been hard to find of late.
While I don’t put much on various consumer sentiment surveys for a number of reasons. Recent market volatility and the on again, off again, trade war with the Chinese and other trading partners is beginning to take its toll. The University of Michigan Consumer Sentiment Survey for August fell 6.3 points to 92.1 in August. Weakness was noted in expectations. Inflation assumptions remain fairly modest, just under 3%, despite considerable history showing inflation to be running about 2% for a number of years now.
Standard and Poors 500 Index closed at: 2,888.35 up 40.75
NASDAQ finished the day: 7,894.27 up 127.65
Gold ended trading at: $1,522.60 down 8.60