Caleb Lawrence – KPIG-KPYG Radio – Share the Wealth – March 16, 2017
The major averages opened higher on mixed data, slipped late and enter the final hour about even. Building permits missed expectations in February falling 6.2% to 1.213 million units annualized. Starts gained 3% to 1.288 million units annualized slightly ahead of consensus. So far higher interest rates don’t seem to be having much effect on real estate and construction activity.
The Philadelphia Fed manufacturing index fell 10.5 points to a still strong 32.8 in March as price data jumped substantially will see if that holds going forward given the sharp declines in energy prices of late.
The Trump administrations proposed budget outline seems to be as well considered as his immigration and healthcare proposals with all igniting a firestorm of controversy even amongst Republicans. Featuring large increases in military, and security related spending at the expense of social, environmental, education and infrastructure spending it’s hard to see how this is going to make America great again unless you count more and better wars. Once again the classic Republican play book of deregulation, tax cuts and more military spending looks to throw everyone else under the bus. At least the debt ceiling limit will put a lid on deficits for the time being.