The KUIK Morning Market Report for Monday, August 28:
Markets are mixed.
Index
Direction
Change
Units
Index
Time
Change
Dow Jones Industrial Average
Down
(11)
points
21,802
7:34 AM
S&P500
Down
0.0%
percent
2,442
(0.78)
Nasdaq Composite
Up
0.1%
percent
6,275
8.88
30 Year Treasury
Up
1
Basis Points
2.76
Annual Yield
The White House announced President Trump will fly to Houston on Tuesday, where he will see firsthand the damage from Hurricane Harvey that has flooded the nation’s fourth-largest city.
The Commerce Department reports the advanced trade gap in goods services are excluded widened by nearly 1.8% to $65.1 billion in July. Both exports and imports declined, but exports dropped at a faster pace. Economists expected only $64.6 billion. Despite the wider deficit, economists expect trade to be positive to growth in the third quarter. U.S. exports are being helped by a rebound in global growth and a weaker dollar.
Countries growing weakly should invest to stimulate growth even if they HAVE high levels of debt, according to a paper Alan Auerbach and Yuriy Gorodnichenkopresented from the University of California Berkeley presented at the Kansas City Fed conference in Jackson Hole. The study argues that government spending shocks do not lead to persistent increases in debt-to-GDP ratios or costs of borrowing, especially during periods of economic weakness.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
