The Market Bull – August 13, 2019
The major averages plunge one day on trade war fears. Only to surge the next on yet another rumored delay on increasing and broadening tariffs on Chinese imports.
The July Consumer Price Index or CPI advanced .3% on a big jump in energy prices. On a year ago basis the CPI is up a modest 1.8%. Once again below the Fed’s desired 2% target.
Despite a severely inverted yield curve and much lower interest rates, including mortgage interest rates that have fallen 1.25% since November. Real estate activity remains lackluster with a sales slump running 15-months and counting. Construction activity is also weak of late as prices dampen enthusiasm. While plans to buy a home continue to slip as well. The markets recent gyrations are likely to dampen investor enthusiasm as well as real estate faces a long summer.
Standard and Poors 500 Index closed at: 2,926.32 up 42.57
NASDAQ finished the day: 8,016.36 up 152.96
Gold ended trading at: $1,511.80 down $2.30