Stocks Mark Record Highs, as US Industrial Production Fell Most in 8 Years

Stocks Mark Record Highs, as US Industrial Production Fell Most in 8 Years

Stocks Mark Record Highs, as US Industrial Production Fell Most in 8 Years


US stocks ticked up Friday running to record highs on the week, as The Trump Rally extends.

  • The Dow (+0.3%) advanced to a new-all time high again, as did the S&P 500 (+0.2%), which settled right at of 2,500. The Nasdaq (+0.3%) finished higher, but did not gain enough to erase its Thursday decliner, leaving the index about 12 points below its record-high close. 
  • US industrial output dove 0.9% in August, the most in 8 years, mostly because of Hurricane Harvey’s damage to the Crude Oil refining, plastics and chemicals industries.

The Storm, which slammed into the Gulf Coast in Texas and Louisiana late last month, lowered industrial production by about 0.75 percentage point, the Fed said Friday. That suggests production would have slipped without the Hurricane.

The Gulf Coast is home to many of the nation’s Crude Oil refiners, and petroleum is a Key component in the manufacturing of plastics and chemicals.

Manufacturing has picked up since last Summer as the USD has fallen in value, which makes US goods cheaper overseas, boosting exports. Manufacturing production fell 0.3% last month, though the Fed said that without the Hurricane, it would have increased about 0.5%.

And a survey of manufacturing firms that preceded Harvey found that factory activity rose to a 6-year high in August.

The Fed’s report illustrates how Harvey has disrupted the wider US economy, the data included signs of weakness, excluding the impact of Harvey.

The August decline was widespread, with only the auto industry surprisingly gaining in the month.

Industrial production includes mining and utilities as well as manufacturing. Utility output tumbled 5.5% as milder temperatures on the East Coast reduced air conditioning use.

And mining production fell 0.8% in August, as Harvey temporarily shut down the drilling of Crude Oil and Nat Gas and refining operations.

Friday, the US major stock market indexes finished at: DJIA +64.86 at 22269.64, NAS Comp +19.38 at 6448.44, S&P 500 +4.61 at 2501.68

Volume: Trade on the NYSE came in at: N/A

  • NAS Comp +19.8% YTD
  • DJIA +12.7% YTD
  • S&P 500 +11.7% YTD
  • Russell 2000 +5.5% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Bullish (0.47) Bullish (0.42) Very Bullish (0.54) Bullish (0.46)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Bullish (0.30) Bullish (0.45) Neutral (0.19) Bullish (0.25)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.46) Very Bullish (0.56) Bullish (0.35) Bullish (0.46)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Bearish (-0.42) Bearish (-0.33) Bearish (-0.35) Very Bearish (-0.58)

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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