Market News – May 13, 2019

Market News

INFLATION STILL TAME:  The U.S. Federal Reserve Bank has set its inflation target at 2%.  It works hard to keep the U.S. far away from deflation, and it does not want runaway inflation.  To the Fed, Goldilocks territory is 2%.  The Consumer Price Index (CPI) gained 0.3% in April.  If you take out the more…

May 13, 2019

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Market News – May 6, 2019

Market News

U.S. LABOR MARKET KEEPS HUMMING:  In April, the U.S. economy added 263,000 new jobs.  That is the 103rd consecutive month of positive job creation in the U.S. The unemployment rate dropped to 3.6%, the lowest it has been since December 1969.  The drop in the unemployment rate was caused by the large increase in jobs…

May 6, 2019

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Market News – April 29, 2019

Market News

STRONG G.D.P. GROWTH IN FIRST QUARTER:  U.S. economic growth, as measured by Gross Domestic Product, grew at an annual rate of 3.2% in the first quarter according to the U.S. Commerce Department.  No one was forecasting growth that high.  This is the best first quarter showing in four years.  The high number was driven largely…

April 29, 2019

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Market News – April 22, 2019

Market News

RETAIL SALES PICK UP:  Over the past few months, U.S. retail sales numbers have been lackluster.  In March, sales rose at their fastest pace in a couple of years rising 1.6% from the prior month and 3.6% from March of last year.  Spending on autos, gasoline, furniture and clothing rose.   UNEMPLOYMENT CLAIMS GO DOWN…

April 22, 2019

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Market News – April 15, 2019

Market News

118 MONTHS AND COUNTING:  Now that the economic recovery has continued into April, it is now into its 118th month, making this the second longest recovery in U.S. history, according to the National Bureau of Economic Research.  The longest was 120 months from March 1991 to March 2001.  In three months, this will be the…

April 15, 2019

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Market News – April 8, 2019

Market News

HIRING PICKS UP IN MARCH:  After a February lull, hiring picked up again in March.  The U.S. economy added 196,000 jobs and the unemployment rate held steady at 3.8%.  The Labor Force Participation Rate ticked down (it has been in a tight range for about six years now).  Wages in March were 3.2% higher than…

April 8, 2019

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Market News – April 1, 2019

Market News

GREAT IMAGERY:  Two things happen this time of year.  The weather begins to heat up, and the baseball season starts.  Even for those who do not religiously follow baseball, you can’t help but catch the “hope springs eternal” attitude that warmer weather and a “new beginning” brings.  All baseball teams start with a clean slate…

April 1, 2019

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Market News – March 25, 2019

Market News

ANXIETY:  U.S. stocks were having another positive week until Friday.  On Wednesday, the Federal Reserve bank held a press conference following a two-day meeting.  The Fed essentially removed a major source of uncertainty by indicating that it will hold interest rates steady for the year.  Thursday, therefore, propelled stocks higher.  On Friday, the markets could…

March 25, 2019

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Market News – March 18, 2019

Market News

NEW HOME SALES:  According to the Census Bureau, 607,000 new homes were sold in January.  This is 6.9% below December and 4.1% below January of a year ago.  The graph below shows new home sales since 1963.  Even with increased sales in the last several years, current rates are somewhat low historically.  The supply of…

March 18, 2019

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Market News – February 26, 2019

Market News

NOT SELLING ENOUGH KETCHUP:  As you will see below, stocks advanced last week, but it would have been better had it not been for a 30% drop in Kraft Heinz.  After reporting a significant drop in earnings followed by the announcement of an SEC investigation into its accounting, the stock price plummeted.  There are a…

February 26, 2019

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