The KUIK Morning Market Report for Friday, January 27:
Market are down slightly.
Index
Direction
Change
Units
Time
Dow
Down
(4)
points
20,097
7:04 AM
S&P500
Down
-0.1%
percent
2,294
Nasdaq Composite
Down
-0.1%
percent
5,651
30 Year Treasury
Down
(1)
Basis Points
3.08
Annual Yield
The Commerce Department reports that gross domestic product expanded 1.9% annually in the fourth quarter. That’s below the 3.5% in the third quarter and below 2.2% expected by economists. For the full year, the U.S. grew just 1.6% compared to 2.6% in 2015. Tt was the weakest performance since 2011. The historical average is 3.3% and the last time the U.S. topped 3% was in 2005. A wider trade deficit was the biggest anchor in the fourth quarter. The economy would have topped 3% growth if the trade gap had been unchanged. Consumers increased spending by 2.5%.
President Trump has vowed to push the economy into higher gear with a combination of tax cuts, reduced regulations, and spending on infrastructure. Most economists predict the economy will grow around 2% 2017. The payoff from the president’s policies will probably come at the end of the year or early 2018.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
