Archives of “August 21, 2019” day

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Here’s a call for a September and December Federal Reserve rate cut

  
  Analysis

Not waiting for Fed Chair Powell to speak at Jackson Hole (Friday 23rd August at 1400 GMT) Standard Chartered with a call on what to expect from the FOMC:

Fed funds target rate   
  • adding a 25bps cut in September (we expect two dissents again)
  • We continue to forecast a cut in December, as well
Stan Chart citing:
  • heightened trade uncertainty
  • ongoing deterioration in global growth
US economic fundamentals remain solid, for now
  • strong labour market and consumer spending
  • However, both coincident and leading indicators from the goods sector have been deteriorating.” 
“Core inflation remains below the FOMC’s medium-term 2% objective…
  • we expect the policy stance to remain dovish until either trade and growth concerns abate, core inflation tops 2% or wage growth tops 3.5% y/y, roughly the latest cycle’s peak.”

Trump says he would love to reduce capital gains taxes

  
  Analysis
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Tough to imagine he could do it

Now that Democrats have the House it’s going to be tough to do anything substantial, or anything Republicans in the Senate would support. There’s some talk that the White House will try to index capital gains to inflation via executive order or technical changes but it’s tough to believe that would fly. In any case, it’s not going to give a jolt to the economy and awaken sluggish business investment.

US stock indices go out near the lows for the day

  
Analysis, US Market
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  • The S&P index fell -23.11 points or 0.79% at 2900.53
  • The NASDAQ index fell -54.25 points or -0.68% at 7948.56
  • The Dow industrial average fell -173.35 points or -0.66% at 25962.42
Selling into the closeThe major indices open lower but did recover midday and traded marginally higher before reversing and moving back down.
The European indices were higher earlier in the day, but gave up those gains and also ended near low levels.
Winners on the day included:
  • Beyond Meat, +6.55%
  • Home Depot, +4.45%
  • LYFT, +3.81%
  • Qualcomm, +1.60%
  • Twitter, +1.44%
  • Broadcom, +0.57%
  • Square, +0.48%
  • Intuitive Surgical, +0.47%

Losers included:

  • Netflix, -3.36%
  • AMD, -2.41%
  • American Express, -2.38%
  • Bank of America, -2.02%
  • UnitedHealth, -1.90%
  • Micron, -1.73%
  • Nvidia, -1.70%
  • PNC financial, -1.68%
  • General Mills, -1.65%
  • Pfizer, -1.59%
  • Coca-Cola, -1.5%
  • IBM, -1.44%
  • Alphabet, -1.41%
  • Facebook, -1.39%
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