Markets across the board were positive last week on slightly lower than anticipated inflation data. This means the market doesn’t expect the Fed to have to raise interest rates any faster than their current measured pace. The stock market loves low interest rates.
It’s too early to take stock of the damage caused by hurricane Florence, though some of the smaller towns in the Carolina’s are likely to have extreme flood damage. So far, the markets, as dispassionate as they are, are taking the whole thing in stride. Early indications are many of the big insurers dodged a bullet as much of the damage will occur from flooding which gets dumped onto the federal government's flood program.
Consumer confidence remains high, and the economy seems to continue chugging. The question on most minds is whether or not trade deals are going to go sour. Thus far we’ve gone past simple rhetoric, with the Trump looking to place additional tariffs on $200 billion of Chinese goods. The question is whether or not China will come to the table or take their ball and go home. (Judging from their stock market performance, they’ll probably come to the table).
So far, from a technical behavior perspective, markets have taken this news in stride. In fact, the S&P500 appears to be consolidating around the 2900 level.
This day in history:
The Constitution of the United States of America is signed by 38 of 41 delegates present at the conclusion of the Constitutional Convention in Philadelphia. Supporters of the document waged a hard-won battle to win ratification by the necessary nine out of 13 U.S. states.
Quote of the week:
I love money. I love everything about it. I bought some pretty good stuff. Got me a $300 pair of socks. Got a fur sink. An electric dog polisher. A gasoline powered turtleneck sweater. And, of course, I bought some dumb stuff, too.
--Steve Martin PUBLISHED BY NICK TOADVINE
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September 18, 2018
