Trump Economy Driving Robust GDP to 3.5% in Q-3

Trump Economy Driving Robust GDP to 3.5% in Q-3

Trump Economy Driving Robust GDP to 3.5% in Q-3

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

The US economy grew at a robust annual rate of 3.5% in the July-September Quarter as the strongest rise i consumer spending in nearly 4 years helped offset a sharp drag from trade.

The Commerce Department said Friday that Q-3 GDP, the country’s total output of goods and services, followed an even stronger 4.2% rate of growth in Q-2. The 2 Quarters marked the strongest consecutive Quarters of growth since Y 2014.

The result was higher than most economists had been projecting.

President Donald Trump cited it as evidence his economic policies are working. But some private economists worry that the recent stock market declines could be a warning signal of a coming slowdown.

Tune out that Noise, and do not confuse the economy with the financial markets activities.

The GDP report along with next week’s unemployment report for October are the last major looks at the economy before voters go to the polls in the mid-term elections.

For this year, economists are projecting the momentum built up should result in growth of 3%, the best annual showing in 13 years.

President Trump has ratcheted up his attacks on the Fed for raising interest rates, contending that the higher rates by slowing the economy will work against his efforts to speed up growth through the $1.5-T tax cut package he got Congress to pass last year.

“Every time we do something great, he raises interest rates,” President Trump said in an interview this week with the WS-J in which he again said he viewed the Fed as the “biggest risk” facing the economy “because I think interest rates are being raised too quickly.”

The Fed has raised rates 3X this year and signaled it will raise rates 1 more time this year and expect to raise rates 3X in Y 2019. Those moves are being made to ensure that tight labor markets, with unemployment at a 49-year low of 3.7 percent, and strong growth don’t trigger unwanted inflation.

The GDP report Friday was the government’s 1st of 3 reviews of overall economic activity for the July-September frame.

Friday, the major US stock market indexes finished at: Dow -296.24 at 24688.31, Nasdaq -151.12 at 7167.40, S&P-46.88 at 2658.83

Volume: Trade on the NYSE came in at 1.1-B/shares exchanged

  • NAS Comp +3.8% YTD
  • DJIA-0.1% YTD
  • S&P 500 -0.6% YTD
  • Russell 2000 -3.4% YTD

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis for the Week Ended 26 October 2018

Date Symbol Price Technical Analysis Support Resistance
26 Oct-26-2018 QQQ 167.26 Bearish (-0.31) 166.90 169.67
26 Oct-26-2018 DIA 248 Bearish (-0.28) 243.45 250.18
26 Oct-26-2018 SPY 266.94 Very Bearish (-0.52) ??? 269.32

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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