The KUIK Morning Market Report for Tuesday, January 16:
Markets are up.
Index
Direction
Change
Units
Index
Time
Change
Dow Jones Industrial Average
Up
257
points
26,060
7:13 AM
S&P500
Up
0.7%
percent
2,804
(0.02)
Nasdaq Composite
Up
0.8%
percent
7,318
(8.63)
30 Year Treasury
Down
(2)
Basis Points
2.84
Annual Yield
China’s Dagong Global Credit Rating Co. has downgraded its credit ratings for U.S. government debt, citing political "deficiencies." Dagong is one of China’s major ratings agencies. It announced the cut in the local and foreign-currency sovereign ratings for the US from A- to BBB+. Dagong said the Trump administration’s "massive tax cuts directly reduce the federal government’s sources of debt repayment, therefore further weakens the base of government’s debt repayment. The tax cuts act implemented from 2018 did not attack the root cause of the unsustainable debt-driven economy of the U.S., so it is projected that the U.S. economy [grows] only 2.3% in 2018, and would grow even more slowly in the years after."
The New York Fed reports the Empire State manufacturing survey fell to 17.7 in January from a revised 19.6 in December. Economists expected 18.6. This is the third straight monthly decline after the index hit 28.1 in October. New-orders and shipments fell while unfilled orders and inventory. Future inventories hit a record high, suggesting firms will add to inventories in coming months.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
