There is No Permanent Economic Damage From Shutdown

There is No Permanent Economic Damage From Shutdown

$DIA, $SPY, $QQQ, $RUTX, $VXX

Monday, White House economic adviser Larry Kudlow said the recent partial government shutdown inflicted “no permanent damage” to the economy.

“I still think the economy is very strong,” the head of the National Economic Council that advises President Trump said at a White House briefing. 

“As I have said many times I think you have just a whole bunch of very temporary factors and now that the government reopened the switch goes right back on. There’s certainly no permanent damage to the economy,” he said.

Mr. Kudlow said he did not think the shutdown was disruptive to the economy because of such recent strong economic reports as low unemployment claims and a rise in the industrial production number from the Federal Reserve.

“A scattered look at the kinds of data points suggest to us that we’re still in a very strong mode right now and I use the 3% as a longer term view but I also think it pans out in the short run,” said Mr. Kudlow.

The government reopened fully on Monday after President Trump and Congress agreed on temporary funding, without the $5.7-B he demanded toward building his long-promised Wall along the US-Mexico border. Lawmakers have until 15 February to address border security to avoid another closure.

Regarding the CBO cost report estimate at $11-B

“In a $10-T economy it is hard to make the best guesstimates of those kind of small fractions of numbers,” said Mr. Kudlow.

Monday, the major US stock market indexes finished at: DJIA -208.98 at 24528.22, NAS Comp -79.18 at 7085.19, S&P 500 -20.91 at 2643.8

Volume: Trade on the NYSE came in at 821-M/shared exchanged

  • Russell 2000 +9.3% YTD
  • NAS Comp +6.8% YTD
  • S&P 500 +5.5% YTD
  • DJIA +5.2% YTD

HeffX-LTN overall technical analysis of the major US stock market indexes is Neutral to Bullish.

Stay tuned…

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