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White House economic adviser Larry Kudlow says the indicators for the USA show that America is the ‘hottest economy’ in the world.
He predicted the next monthly unemployment report will likely shock naysayers.
Mr. Kudlow said the economy will snap back from any “glitch” created by partial government shutdown, as that money flows back into the economy.
“We are the hottest economy in the world. Nothing has changed,” Mr. Kudlow said when asked by reporters how the government shutdown could hurt economic growth.
Larry Kudlow is assistant to the President for economic policy and director of the White House’s National Economic Council (NEC).
In his discussion pointed to a litany of strong economic data. Among them, filings for US unemployment benefits fell last week to the lowest level since Y 1969, signaling the labor market remains tight despite the partial federal-government shutdown.
Jobless claims declined 13,000 to 199,000 in the week ended 19 January bucking economist forecasts for an increase, Labor Department figures showed Thursday. The 4-week average, a less-volatile measure, decreased to 215,000, the lowest since early November.
The jobless-claims drop likely signals another blowout month for the next monthly unemployment report despite the prolonged government shutdown, Mr. Kudlow said.
“It suggests very strongly that the jobs report for January will be up,” Mr. Kudlow said. “And it may be up a significant amount,” he predicted.
To be sure, job creation ended Y 2018 on a powerful note, with NFPs (nonfarm payrolls) surging by 312,000.
“We are the hottest economy in the world. Trillions of dollars are flowing here and building new plants and equipment,” he said.
“Almost every other data point suggests, that the economy is very strong. We will beat 3% economic growth in the fourth quarter when the Commerce Department reopens,” he said.
“We are seeing very strong chain sales. We don’t get the retail sales report right now and we see very strong manufacturing production.
And in particular, this is my favorite with our corporate tax cuts and deregulation, we’re seeing a seven-month run-up of the production of business equipment, which is, you know, one way of saying business investment, which is another way of saying the kind of competitive business boom we expected to happen is happening,” he said.
To be sure, Reuters reported that labor market conditions remain strong, which for now should help to temper fears of a sharp slowdown in economic growth. Other data Thursday showed a gauge of future US economic activity fell in December.
“I can only give you numbers like this. These are facts. They’re all pointing in the direction of a continued strong American economy,” said Mr. Kudlow.
The economy is facing some headwinds, including a trade dispute with China, a bitter 1 coming with the EU, and a month-long partial shutdown of the federal government, which are dampening consumer and business confidence.
Higher interest rates, fading fiscal stimulus and cooling global economies are also seen effecting domestic growth.
But, if you are looking for good news on the economy, look no further than the labor market. Growth may be slowing, but the overall picture for workers and those seeking work remains quite positive.
Thursday, the major US stock market indexes finished at: DJIA -22.38 at 24553.24, NAS Comp +47.69 at 7072.97, S&P 500 +3.63 at 2642.29
Volume: Trade on the NYSE came in at 790-M/shares exchanged
- Russell 2000 +8.6% YTD
- NAS Comp +6.6% YTD
- S&P 500 +5.4% YTD
- DJIA +5.3% YTD
HeffX-LTN technical indicators for the major US stock market indexes are Neutral to Bullish in here.
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