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Afternoon Note

Firmly Red

By Charles Payne, CEO & Principal Analyst
8/2/2019 1:24 PM

The markets have been firmly in the red all session.  Tariff banter continues to spook investors.  Plus, economic data had some yellow flags. 

Final read for Factory orders for June increased 0.6% but below the consensus of 0.8%, and May was revised lower to -1.3% from -0.7%. April was -1.2%. New orders for durable goods rose 1.9% and nondurable goods decreased by 0.5%.  Excluding transportation, orders were up a mere 0.1% compared to 1.2% in the initial read.  

A proxy for business spending, nondefense capital goods orders excluding aircraft, was revised lower from the preliminary read of 1.9% to 1.5%. Shipments while up 0.3% were down from the preliminary read of 0.6% and will be a negative on Q2 GDP 2nd estimate.

On a brighter note,  the final read on Consumer Sentiment for July from the University of Michigan, was 98.4, better than the initial 98.2, and 98.2 for June.  It doesn’t appear that trade war or economic concerns are weighing on the consumer.

At midday, the Nasdaq is hardest hit, down 1.5%, the S&P 500 -0.9 and the Down -0.8%.  Consumer Staples, Real Estate and  Utilities are in the green, but not by that much. The dollar is lower, and the 10-year benchmark treasury yield is 1.87%. 

S&P 500 Index


Communication Services (XLC)


Consumer Discretionary (XLY)


Consumer Staples (XLP)


Energy (XLE)


Financials (XLF)


Health Care (XLV)


Industrials (XLI)


Materials (XLB)


Real Estate (XLRE)


Technology (XLK)


Utilities (XLU)



There is not a sense of panic on the street.  And if you wanted another opportunity to enter the market or buy particular stocks, its being created.

Have a great weekend.



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