Strong US data as stocks eye record highs

14 September 2018

This content has been created by X-Trade Brokers Dom Maklerski S.A.


  • US industrial production beats forecasts while prior revised higher

  • Uni Mich tops estimates to move back near multi-year highs

  • US indices near all time highs; set for solid weekly gains


The final data points of the week of note from the US have shown some positive news and taken together with the earlier retail sales numbers shows little signs of concern in the economy. First off the industrial production figures for August showed a M/M reading of +0.4%, slightly above the +0.3% expected. The prior reading was also revised higher for good measure and now stands at +0.4% after +0.1% last time out. In Y/Y terms the reading stands at an impressive +4.9%.

US industrial production continues to lag behind the ISM manufacturing reading despite rising once more to be near its highest level of the decade. Source: XTB Macrobond


Not long afterwards the University of Michigan announced the outcome of their latest surveys with more good news for the US economy. The preliminary consumer sentiment index moved back above the 100 level for only the second time this after a reading of 100.8 and is now close to its highest level in several years. This was well above the 96.7 expected and the prior reading of 95.3 was also revised higher to 96.2.  

The University of Michigan consumer sentiment index has extended the uptrend seen for several years and supports the conference board equivalent in indicating a high level of consumer confidence at present. Source: XTB Macrobond  


US indices began the week coming under a little pressure but they have grown stronger as it has progressed and they look set to end the week close to record highs. The US500 pulled back to its 21 EMA (yellow line below) on Monday and Tuesday but as has been the case on several occasions during the current rally this proved to be a nice buying opportunity and price bounced higher. The market is now not far from its highest ever level of 2917.3 and given the recent bullish price action it wouldn’t come as a great surprise if this is broken above in the not too distant future - possibly even before the weekend.

The US500 bounced strongly from its 21 EMA once more earlier this week and is now looking to move up into uncharted territory and break the all time high of 2917. Source: xStation


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