US equity indexes closed mostly positive, sp +9pts (0.3%) at 3046. Nasdaq comp' +0.3%. The Transports settled -1.8%.
sp'daily5
VIX'daily3
Summary
US equities opened in minor chop mode, and leaned a little weak ahead of the fed.
Early morning saw ADP jobs of 125k, with Q3 (first print) of 1.9%. Both are indicative of m/t economic weakening from late 2018.
... for historical posterity. --
At 2pm, the fed cut rates for a third time by -25bps to 1.50/1.75%.
Powell danced the fine line, and it was enough for the SPX to break a new historic high for a third consecutive day of 3050. There was some subtle closing hour cooling.
Volatility remained subdued, and with equities leaning mostly upward, settled -6.6% to 12.33.
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US equity indexes closed on a weak note, sp -2pts (0.1%) at 3036. Nasdaq comp' -0.6%. Dow -0.1%. The Transports settled -0.2%.
sp'daily5
VIX'daily3
Summary
US equities opened in minor chop mode, but it didn't take long for the SPX to break a new historic high for a second consecutive day of 3047.87.
The morning saw Trump take a swipe at Print Central. The afternoon saw some cooling, to settle fractionally weak at 3036. Volatility remained subdued, with the VIX settling +0.7% at 13.20.
Meanwhile...
Today saw CEO Muilenberg of Boeing face question from the US House...
Mistakes... many.... many mistakes
Long ago, in a different life, I actually did a semester on risk and decision making within government and private corporations. Across the last half century we've seen some truly bizarre and insane decisions. I'd especially highlight the Chernobyl nuclear disaster, and STS-51-L (Space Shuttle Challenger), both in 1986.
Boeing has lost two planes due to the insane decision to try to mitigate an unbalanced plane - the 737MAX, via a software fix.
Lets be clear, whilst an updated MCAS might make the 737MAX a safer plane, it won't resolve the hardware problem that the plane is inherently unbalanced.
The following gives a superb background overview for the 737MAX.
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For the record, I don't care how good the MCAS system/software might be improved. The plane is still inherently unbalanced, and by definition... not safe to fly. I would imagine that Boeing and the FAA will be stupid enough to allow 737MAX to fly in 2020.
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US equity indexes mostly closed moderately higher, sp +16pts (0.6%) at 3039. Nasdaq comp' +1.0%. Dow +0.5%. The Transports settled -0.03%. Near term outlook offers broad chop ahead of the Fed.
sp'daily5
VIX'daily3
Summary
US equities began the last four days of October on a positive note, with the SPX breaking a new historic high at the open.
At 9.41am EDT...
Whilst the US President didn't mention the fed today, we can expect some swipes later this week, not least if the main market sees a classic 'sell the news' outcome.
Volatility remained subdued, with the VIX settling +3.6% at 13.11. S/t outlook offers a washout into early November, with FIVE downside gaps to sp'2911/2893.
Meanwhile...
The EU leadership made it official, with another delay to Jan'31st 2020. In the evening, PM Johnson pushed a vote to hold a general election.
... whilst the vote was 290/70 in favour, it was below the necessary majority (326 or higher). I would expect another vote (or more!) in the days ahead, with an election Dec'12th, with the results notably due Friday 13th. Good luck with that Johnson!
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