Investment Updates
Stocks Dropped 2.6% On Friday, As Reality Gap Seemed To Widen
Published Friday, August 23, 2019 at: 7:00 AM EDT
Stocks plunged on Friday, despite Thursday's rise in the U.S. Leading Economic Indicators Index, as the gap between reality and perception of financial economic conditions grew more difficult to discern.
Friday's 2.6% plunge in stocks occurred after Thursday's report that the U.S. Leading Economic Indicators Index increased one-half of 1% in July to 112.2, following the one-half of 1% ticks down in May and June. Housing permits, unemployment insurance claims, and stock prices drove the improvement in July.
"The manufacturing sector continues exhibiting signs of weakness and the yield spread was negative for a second consecutive month," said Ataman Ozyildirim, director of economic research at The Conference Board, which tracks the LEI monthly. "While the LEI suggests the U.S. economy will continue to expand in the second half of 2019, it is likely to do so at a moderate pace."
© 2024 Advisor Products Inc. All Rights Reserved.
More articles
- A Prudent Perspective On Recent Volatility
- A Tale Of Two Economies
- Amid Worries, New Equity Risk Premium Data Explained
- GDP Rose More Than Expected; Stocks Top Record Again
- Slower Growth Confirmed By June Leading Economic Indicators
- Stocks Closed At A Record High; Should You Worry?
- Amid Record Stock Prices, Fed Policy Is A Risk
- Uncle Sam Delivers A Strong Economy
- A Dramatic Pause, As Expansion Breaks Longevity Record
- The Explosion In Real Retail Sales You Never Hear About
- Amid Signs Of Weakness, Fed Reverses Course; Stocks Rally
- Three Stories Affecting Your Wealth This Week
- Buried In The Fed's Financial Stability Report, A Potential Risk To Investors
- Forget Everything You Know About Inflation
- China Trade War Sparks Fear But Not Stock Losses