U.S. and World News
- British Prime Minister Boris Johnson is set for a big day tomorrow as parliament is set to vote on a Brexit deal that the Prime Minister agreed on with the European Union on Thursday. Boris Johnson stated that he is “very confident” that the House of Commons will support the deal, which is widely expected to be a historically close vote and will determine whether there will be a deal or not before the October 31st deadline. The Northern Irish Democratic Unionist Party (DUP) stated that they are unable to support the deal as it stands, casting doubts over the passage of the deal tomorrow. If the MP’s reject the deal tomorrow, it is still possible that a vote on a “no-deal Brexit” could pass, but that is unlikely given historical votes on the this motion. The likely outcome if the Brexit deal is voted down tomorrow is that the United Kingdom will ask the European Union for another extension.
- Markets were mixed this week after corporate earnings and Chinese economic data. The S&P 500 rose 0.55% and closed at 2,986. The Dow Jones fell 0.13% and closed at 26,770. Year-to-date, the S&P is up 20.96% and the Dow Jones is up 16.90%.
- Yields rose slightly this week. The 5 year and 10 year U.S. Treasury Notes are yielding 1.56% and 1.75%, respectively.
- The spot price of WTI Crude moved lower this week this week. Prices fell 1.83% and closed at $53.70 per barrel. Year to date, Oil prices are up 18.26%.
- The spot price of Gold rose by 0.11% and closed at $1,490.67 per ounce. Year to date, Gold prices are up 16.23%.
- Initial jobless claims rose by 4,000 to 214,000 and the four-week moving average rose by 1,000 to 215,000. Claims increased by 5,000 in California.
- The level of housing starts fell 9.4% to 1,256k versus expectations for a reading of 1,320k
- Building permits fell by 2.7% versus expectations for a decline of 5.3%
- Retail sales fell 0.3% versus expectations for an increase of 0.3%
- Core retail sales remained unchanged versus expectations for a 0.3% increase
- Industrial production fell by 0.4% versus expectations for a decline of 0.2%
Fact of the Week
- In 2008, China’s economy was smaller than the economy of Japan ($4.5 Trillion vs $4.9 Trillion). In 2019, China’s economy is nearly triple that of Japan’s economy ($14.2 Trillion vs $5.2 Trillion)
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