Caleb Lawrence – KPIG-KPYG Radio – Share the Wealth – March 2, 2017
The major averages drifted lower in morning trade and enter the final hour with small losses on little real news. The Trump administration seems to be embroiled in scandal once again as the Attorney General Jeff Sessions seems to have had contact with the Russians as well, and lied about it. He joins Kellyanne Conway who is caught up in her own ethics investigation.
Yesterday’s sharp reductions in Gross Domestic Product or GDP estimates follow the usual script, open the quarter with solid looking estimates of about 3% then revise them steadily lower as the quarter progresses. The Atlanta FED GDPNow model chopped 1% of its 1st quarter estimate cutting it to just 1.8%, Goldman Sachs concurred, JP Morgan figured it was going to be just 1.5% while Bank of America said just 1.3%. Others peg 1st quarter economic growth as low as 1.1%, based on the available data 2% or better is definitely out of the question at this moment. That didn’t stop the odds of a Fed rate hike this month hitting 90% as interestingly enough the lamestream media pundits push higher interest rates as a good thing, they obviously need a history lesson and a few others related to valuations just for starters.
The Fed’s Beige Book on regional activity noted that the economy continues to muddle along but that uncertainty was starting to cloud the outlook for some going forward.
Vehicle sales slipped fractionally in February to 17.58 million units annualized a respectable number helped along by substantial dealer incentives rapidly approaching their historical limit along with sub-prime financing.