Morning Minutes 9/13/2019

Morning Minutes

Strong US Retail Sales Propel North American Indices Toward Previous All-Time Highs

September 13, 2019
8:45 am EDT

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Market Commentary By:
Colin Cieszynski, CFA, CMT
Chief Market Strategist
+1 (647) 282-4428

Between the continuing positive reaction to yesterday’s ECB stimulus package, speculation that the Fed could cut interest rates again next week and hope that the US and China can continue to work toward a trade deal, stocks and commodities are gaining ground again this morning. Dow futures are up 45 points or 0.2%, while overseas, the Dax is up 0.5% and the Hang Seng gained 1.0%. Copper is up 1.4% today while crude oil has started to rebound from two days of declines with WTI up 0.4% this morning and Brent holding above $60.00/bbl.

The recent rally in stocks has brought several large-cap North American indices to within striking distance of their previous all-time highs. Levels to note include:

Recent           Previous

Price              High

Dow Jones Industrial Average                                                                   27,295            27,332

S&P 500 Index                                                                                         3,019             3,025

Nasdaq Composite Index                                                                         8.194            8,330

S&P/TSX Composite Index                                                                        16,643            16,669


Indices have crept even closer to their previous highs after catching a tailwind from today’s US retail sales report. Although results from US retailer has been mixed of late, overall consumer spending still appears to be robust. US retail sales increased by 0.4% in August over July, double the 0.2% the street was expecting. This result looks particularly strong considering that July monthly sales growth was revised upward to 0.8% from 0.7%.

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