The Morning View: September 13, 2019

  • September 13, 2019

Senior Vice President / Portfolio Manager

In this morning’s data, Retail Sales increased 0.4% in August, more than the 0.2% expected. The increase was driven by strength in auto sales and non-store retailers. The Control Group, which excludes sales for food, autos, building materials and gas stations, increased 0.3% in August, matching forecasts. The consumer maintains their spending in August, amidst an escalation in trade rhetoric and following strong retail figures in the previous month. Given consumer spending comprises almost 70% of GDP, the economy should maintain its slow growth trend. Inflation readings earlier this week came in slightly above expectations, with the core Consumer Price Index, excluding food and energy, at 2.4% on an annual basis in August. However, this is likely not enough to change the Federal Reserve’s mid-cycle rate cut adjustments. In all, bond yields ticked higher following the report, with the 10-year treasury about 8 basis points above the 2-year. Equity futures are higher this morning heading into the market open.

This material is intended to be for informational purposes only and is intended for current or prospective clients of Argent Trust Company. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice and does not take into account all the circumstances of each investor. Forward‐looking assumptions are Argent Trust Company’s current estimates or expectations of future events or future results based on proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve. Actual results could differ materially from the results indicated by this information. Investments can go down as well as up. Past performance is not a reliable indicator of future results.