The Market Bull – May 13, 2019
The major averages kick off the week with very large losses after the dramatic escalation in the trade war with tariffs hitting 25% and including all Chinese goods. Of course, the Chinese announced their own retaliatory tariffs as well along with suggestions that they would no longer buy US agricultural products and sell some Treasury issues, aka the “nuclear option”. With the markets breaking key technical support levels, the yield curve reinverting and considerable fallout from the trade war looming this could well prove the beginnings of a much larger decline.
Trump continues to demonstrate that he struggles with facts and reality following his latest round of grand pronouncements related to the trade war. With the wood being put to the lies regarding positive trade talks and that the Chinese will pay the tariffs following Larry Kudlow’s comments on the subject.
With economic and earnings data softening as the year progresses. Charge offs and delinquencies are also on the rise as over indebted Americans struggle to pay the bills. The recent 8-year high in credit card delinquencies is simply the latest marker in a deteriorating economic picture all but certain to be exacerbated by the dramatic escalation in the trade war.
Standard and Poors 500 Index closed at: 2,811.88 down 69.52
NASDAQ finished the day: 7,647.02 down 269.92
Gold ended trading at: $1,300.30 up $12.90