$DIA, $SPY, $QQQ, $RUTX, $VXX
Friday, the White House chief economic adviser Larry Kudlow declared President Trump is doing the “Lord’s work” when it comes to defending the US economy in terms of dealing with China, and said he does not believe there is a recession in sight under current scenario.
“I know everybody wants to go after President Trump, who is doing, in my judgment, he is doing the Lord’s work to defend the United States’ economy and national security by showing how China must change its ways,” Mr. Kudlow said in a TV interview.
However, when asked if he could offer assurances that there will be no recession, Mr. Kudlow said it is not known what external factors could happen, but “looking at the data, both coincidental and forward-looking indicators, I believe there is no recession in sight, OK? I believe that.”
His comments come after the US Labor Department’s monthly employment report was issued on Friday, showing job growth has continued to increase, with the unemployment rate dropping to a near 50-yr low of 3.5%, but monthly wage growth remained unchanged and manufacturing payrolls dropped for the 1st time in 6 months and retail jobs dropped.
He added that Q-4 will be strong, but at this time, the country is still suffering from the aftermath of monetary restraint in Y 2018, but now that is being removed.
Meanwhile, the biggest problem in manufacturing exports is not China, “by a long shot,” but it is Europe, and Germany in particular.
“We have lost 150-B manufacturing export sales to Germany in recent months and the Eurozone, in general, is in a virtual recession,” said Mr. Kudlow. “I understand people are concerned about tariffs. Hopefully, we’ll talk about that but when you look at the actual evidence, look, we don’t export that much to China. The loss in manufacturing exports to China is about $50-B. The loss to Canada and Mexico is about $100-B. Their economies are flat. The loss to Germany is $150-B.”
He also said he thinks the House’s impeachment inquiry on President Trump will do “virtually nothing” to the economy and only made a “modest and temporary” impact on the market when it was 1st announced.
“I don’t want to go deep into the impeachment story,” he said. “My own personal judgment … I don’t think there is a leg to stand on, but I’m not an expert. Let me say this, here’s what matters, the president has instituted pro-growth, pro-prosperity policies, lowering tax rates, rolling back costly regulations, opening up the energy sector, and fighting for lower trade barriers and reciprocity and a level playing field with China and other places, OK?”
Friday, the major US stock market indexes finished at: DJIA +372.68 at 26573.72, NAS Comp +110.21 at 7982.48, S&P 500 +41.38 at 2952.05
Volume: Trade on the NYSE came in at 723-M/shares exchanged
- NAS Comp +20.3% YTD
- S&P 500 +17.8% YTD
- DJIA +13.9% YTD
- Russell 2000 +11.3% YTD
HeffX-LTN’s overall technical outlook for the major US stock market indexes is Neutral with a Bullish bias for the week ended 4 October 2019.
Have a terrific weekend
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