“Broad Markets Bump Post FOMC Decision, BLCM and IVOB Jump” Vista Partners Daily Market Recap For Dec. 11, 2019

The broad markets on Tuesday moved marginally higher across the board today as the Fed’s last interest rate decision came is as the market ordered in leaving the same after the three consecutive cuts in 2019. The Fed also left an understating that no further action is likely in the cards next year pointing to persistently low inflation. The US-China trade wars rhetoric was somewhat subdued as we charge forward to the Dec. 15 increased US tariffs’ deadline that will hopefully be moved or resolved. As a result, the S&P 500 ended the day up +.26% as the S&P 500 materials (+.7%), information technology (+.7%), & industrials (+.7%) sectors led the advance while the real estate (-.8%) & financials (-.2%) sectors served to provide a drag ending in negative territory. The Dow Jones Industrial Average ended down +.11%, the Nasdaq Composite gained .44%, & the Russell 2000 moved a little higher +.01% at the close of trading. The “fear gauge” Vix (TVIX) ended lower again at $67.32/share at the close down -4.01% as sentiment rose.

Economic Reports

No material economic data surfaced on Monday.

On Tuesday, we received the Nonfarm business sector labor productivity report which went down by -.2% in Q3. Unit labor costs rose by +2.5%. The NFIB Small Business Optimism Index for November confirmed a move higher to 104.7 from the October mark of 102.4.

On Wednesday, the Consumer Price Index (CPI) report shoed a positive move up +.3% m/m in November whie the core CPI, sans food and energy, moved up +.2%. The Treasury Budget for November came in as a deficit of $208.8B while the budget deficit over the last 12 months is $1.022T up from $1.018T in October. The fiscal y-t-d deficit is $343.3B up from the $305.4B a year ago. The weekly MBA Mortgage Applications Index jumped +3.8%.

Investing & Inspiration

Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.
-Albert Einstein, Theoretical Physicist & Nobel Prize Winner

Tomorrow

We will also receive a couple of economic points of interest as the Producer Price Index for November and the weekly Initial and Continuing Claims reports will surface tomorrow.