Kudlow harping on cutting rates too
The US stocks are hitting new highs and yields are hitting new lows too as Pres. Trump (and Larry Kudlow too) get on the Fed to cut rates. The lower wage data today plays into their hands as well with average hourly earnings YoY rising by 3.2% (lower than the 3.4% estimate).
Putting YoY inflation into perspective, however, show tht the high water mark for YoY wages going back to 2007 is at 3.6%. So although lower at 3.2% (down from 3.4%), it is near the 12 year highs.. Just saying....Labor is still more tight-ish. Will it lead to a bump up in inflation? That is always the cautionness in the Fed...(i.e. keep policy on hold).
For the stocks, the S&P reached a new high of 2891.53 (trade at 2891 currently). The high fro the wee
The Nasdaq traded as high as 7936.27 (trade at 7934 currently). The high for the week did reach 7938.26. So there is some overhead resistance to get above.
The alll time high from August 2018 came in at 8133.298. The upper range from that period can be defined from 7873 to 8133. We are in the upper extreme now (see chart below). Stay above and traders will have their eyes on the high over time.
As far as Pres. Trump, his barometer is "just stocks baby" and when not critical of his enemies (see Adam's reminder from his previous post), he will push for all the things that encourage buy, buy, buy.
