Kansas City Federal Reserve Manufacturing Activity Index

August 23, 2018

August 23, 2018

Stocks opened lower this morning (Dow -100 pts; SPX -.2%). Most market sectors are sagging, led by industrials, financials and materials. Only utilities, telecom, and some pockets of technology are in the green. The financial news media are blaming “trade tensions” as China-US negotiations continue in Washington. Exchange trade volume is very low, so today’s market action doesn’t necessarily represent any conviction on the part of traders. The dollar is stronger against a basket of foreign currencies after a report showing higher wholesale inflation in Europe. That’s putting some pressure on commodities. Copper is down 1%, gold is down .6%, and WTI crude oil is down .4% to $67.60/barrel. Bonds are trading slightly higher today. The 5-year and 10-year Treasury yields are hovering around 2.71% and 2.82%, respectively.


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