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Politics

Fiscal Year (FY) 2019 Funded Through Enacted Appropriation, Not Continuing Resolution (CR)

President Donald Trump left, waves to the crowd as he is introduced by Defense Secretary James Mattis, right, aboard the nuclear aircraft carrier USS Gerald R. Ford for it's commissioning at Naval Station Norfolk in Norfolk, Va., Saturday, July 22, 2017. (Photo: AP)

President Donald Trump left, waves to the crowd as he is introduced by Defense Secretary James Mattis, right, aboard the nuclear aircraft carrier USS Gerald R. Ford for it’s commissioning at Naval Station Norfolk in Norfolk, Va., Saturday, July 22, 2017. (Photo: AP)

The U.S. Department of Defense (DOD) will start fiscal year (FY) 2019 funded through enacted appropriation for the first time in more than a decade. On Friday, President Donald Trump signed H.R. 6157, ending the more than 10-year long practice of operating under a continuing resolution.

“The bill I signed today increases our defense spending to a record $716 billion, which includes the largest pay raise for our warriors in nearly a decade,” President Trump said at signing. “My Administration has secured funding to order 93 new F-35 Lightning Joint Strike Fighters, 142 Apache and Black Hawk helicopters, and 13 Navy battle force ships—made right here in the USA.”

“This is the first time in more than a decade that our Defense Department has been given a full year of funding on time without relying on continuing resolutions.”

The fiscal year (FY) 2019 DOD and Labor, Health and Human Services (HHS), and Education Appropriations Act and Continuing Appropriations Act fully funds the DOD for FY 2019. It also secured additional funding for border security, including $1.6 billion, annualized, to continue building the wall.

“Unfortunately, the radical Democrats refuse to support border security and want drugs and crime to pour into our country,” the president added. “It also provides an estimated $1.5 billion to increase school safety; increases funding for school choice by $42 million; increases funding for veterans vocational education and for the landmark Perkins Career and Technical Education legislation; and secures $6.7 billion to address substance use and mental health, including opioid and heroin abuse.”

The Pentagon praised the passage and signing of the bill because there was a general sense over the last decade that the nation’s national security was too subject to political brinksmanship. While Republicans and Democrats argue over entitlement spending or tax and regulatory policy, they hold up money for defense and could end up putting the nation’s security at risk.

“Of the $716 billion defense funding, which includes DOD and other non-DOD defense entities, such as the Department of Energy (DOE), $686 billion is allocated for DOD,” the Pentagon said in a statement. “The funding level is consistent with the $716 billion 2018 Bipartisan Budget Act national defense spending cap for FY 2019 and the recently.”

This appropriation directly supports the three main lines of effort in the 2018 National Defense Strategy:

  • Restoring readiness and building a more lethal force;
  • Strengthening existing alliances while building new partnerships abroad;
  • Reforming and modernizing our department for greater affordability, accountability and performance

“America is being respected again – and our people are being protected again. I am pleased to have signed this bill into law,” the president concluded.

The U.S. Department of Defense (DOD) will

Policy

American industry and economy imposed on a U.S. dollar.

American industry and economy imposed on a U.S. dollar.

Since I’ve been writing a column every day since 2010, you can imagine that there are some days where that’s a challenge.

But not today. The Fraser Institute has released a new edition of Economic Freedom of the World, which is like a bible for policy wonks. So just like last year, and the year before, and the year before, and so on (you may sense a pattern), I want to share the findings.

First, here’s what EFW measures.

The cornerstones of economic freedom are personal choice, voluntary exchange, open markets, and clearly defined and enforced property rights. …The EFW measure might be thought of as a measure of the degree to which scarce resources are allocated by personal choices coordinated by markets rather than centralized planning directed by the political process. It might also be thought of as an effort to identify how closely the institutions and policies of a country correspond with the ideal of a limited government, where the government protects property rights and arranges for the provision of a limited set of “public goods” such as national defense and access to money of sound value, but little beyond these core functions.

Now let’s get to the good stuff.

Unsurprisingly, Hong Kong is at the top of the rankings, followed closely by Singapore. Those jurisdictions have been #1 and #2 in the rankings every year this century.

The rest of the top 5 is the same as last year, featuring New Zealand, Switzerland, and Ireland.

The good news for Americans is that we’re back in the top 10, ranking #6.

Here’s what the report says about the United States.

…the United States returned to the top 10 in 2016 after an absence of several years. During the 2009–2016 term of President Obama, the US score initially continued to decline as it had under President Bush. From 2013 to 2016, however, the US rating increased from 7.74 to 8.03. This is still well below the high-water mark of 8.62 in 2000 at the end of the Clinton presidency.

It’s important to understand that the improvement in the U.S. score has nothing to do with Trump. The EFW ranking is based on America’s economic policies as of 2016 (there’s always a lag in getting hard data).

President Trump’s policies may increase America’s score (think taxes and regulation) or they may decrease America’s score (think trade and spending). But we won’t know for sure until we see future editions.

Here’s what’s happened to economic liberty in America between 1970 and 2016.

As you can see from the historical data, the U.S. enjoyed progress through the Reagan and Clinton years, followed by decline during the Bush years and early Obama years. But we’ve trending in the right direction since 2013.

Let’s look at other nations that get decent scores.

Here are the other nations that are in the top quartile.

Canada and Australia were tied for #10, so the rest of the rankings start with the under-appreciated success story of Taiwan at #12.

All the Baltic nations do well, especially Estonia and Lithuania. Chile also remains highly ranked, as is the supposedly socialist nation of Denmark.

Luxembourg, which was ranked #1 as recently as 1985, is now #25.

I also noticed that Rwanda (#40) has eased past Botswana (#44) to become the highest-ranked nation in Sub-Saharan Africa.

By the way, I’m not going to bother showing the bottom nations, but nobody should be surprised to learn that Venezuela is in last place.

Though that may simply be because there’s isn’t adequate data to include North Koreaand Cuba.

Let’s close by including a chart that hopefully will show why economic liberty is important.

Simply stated, people enjoy much higher living standards in nations with free markets and small government. Conversely, people living under statist regimes suffer from poverty and deprivation.

The bottom line is that Economic Freedom of the World shows the recipe for growth and prosperity.

Sadly, very few nations follow the instructions because economic liberty is not in the interests of politicians.

The Fraser Institute has released a new edition of Economic

Politics

How Did Your Representative Vote on Tax Reform 2.0?

President Donald Trump shakes hands with House Speaker Paul Ryan of Wis., as Vice President Mike Pence and Congressional Republicans look on during a celebratory bill passage event following the final passage of the Tax Cuts and Jobs Act by Congress. (Photo: AP)

President Donald Trump shakes hands with House Speaker Paul Ryan of Wis., as Vice President Mike Pence and Congressional Republicans look on during a celebratory bill passage event following the final passage of the Tax Cuts and Jobs Act by Congress. (Photo: AP)

A predominantly Republican coalition of lawmakers in the U.S. House voted 220-191 to approve a bill to make permanent tax cuts for individuals. In December 2017, President Donald Trump signed the first overhaul to the U.S. tax code in more than 31 years.

H.R. 6760, or the Protecting Family and Small Business Tax Cuts Act of 2018, makes permanent the tax cuts for individuals and pass-through entities in the Tax Cuts and Jobs Act (TCJA) that would otherwise sunset after 2025. It’s one of three bills that make up what they are calling the Tax Reform 2.0 Package.

“On top of making lower rates for individuals and small businesses permanent, these bills create new savings options for families to plan for education and retirement,” House Speaker Paul Ryan, R-Wis., said in a statement. “They also take the long overdue step of codifying a definition of life into the tax code, and allow penalty-free withdrawals from retirement plans for birth and adoption expenses.”

“And the package promotes innovation and entrepreneurship to help cultivate start-up companies—essential drivers of job creation.”

H.R. 6756, or the American Innovation Act of 2018, contains several provisions intending to make it easier and less costly for an entrepreneur to start a new business. H.R. 6757, or the Family Savings Act of 2018, reforms retirement accounts and family-friendly saving accounts to increase flexibility and encourage savings.

The latter also creates a new universal savings account.

All Votes R D
Yea 51%
 
 
220
217
 
3
 
Nay 45%
 
 
191
10
 
181
 
Not Voting 4%
 
 
18
9
 
9
 

“Tax reform is already an incredible success story. In little more than nine months, we have seen a resurgence of broad-based economic growth, lifting families, workers, and small business owners into optimism and opportunity,” Speaker Ryan added. “The results speak for themselves: The American economy and its workforce are thriving. The three bills passed this week will continue to propel this growth.”

Citing the tax overhaul in 2017, manufacturers’ optimism has hit the highest level ever recorded. Consumer spending broke a new 18-year high and consumer sentiment is at the second-highest level since 2004.

Small business optimism skyrocketed as a result, hitting the highest level ever in September. Less and less firms cite the tax and regulatory environment as they did under the previous administration, and the skills gap is emerging as the major challenge to the nation’s employers.

The U.S. Senate, which is embroiled over the controversy surrounding the confirmation of Judge Brett Kavanaugh to the U.S. Supreme Court, will have to take up the measures before they even make it to the president’s desk. It’s unclear whether Red State Senate Democrats will feel the political pressure the lawmakers below demonstrated.

The Democratic argument against voting for the TCJA focused on the tax cuts for individuals not being permanent. While it’s not garnering much attention at this moment, it was just a few months ago when Senate Democrats unveiled their plan to hike taxes and spend more than a trillion in public sector-only (government) infrastructure projects.

Here are statistically significant votes as tracked by GovTrack.us. Kyrsten Sinema, a Democrat who represents Arizona’s 9th Congressional District, is running for U.S. Senate against Martha McSally, who represents Arizona’s 2nd Congressional District.

They both voted to make the tax cuts permanent, though only Rep. McSally voted “Yes” on both H.R. 6760 and the TCJA. On the other hand, Lee Zledin, a Republican who represents New York’s First Congressional District against voted “No” to the tax cuts. Rep. Zeldin and several others represent districts in high tax states that allow them as deductions.

Vote Party Representative District Score
Yea   D   Sinema, Kyrsten AZ 9th 0.5620500525099489
Nay   R   Rohrabacher, Dana CA 48th 0.7000471552033327
Yea   D   Rosen, Jacky NV 3rd 0.4078406264781989
Nay   R   LoBiondo, Frank NJ 2nd 0.6013882316515721
Nay   R   Smith, Chris NJ 4th 0.6669237514016517
Vote Party Representative District Score
Nay   R   Lance, Leonard NJ 7th 0.6909642296910742
Nay   R   Frelinghuysen, Rodney NJ 11th 0.624971762782471
Nay   R   Zeldin, Lee NY 1st 0.6867332553082992
Nay   R   King, Pete NY 2nd 0.6216568847765601
Nay   R   Donovan, Daniel NY 11th 0.5974966164191219
Vote Party Representative District Score
Nay   R   Faso, John NY 19th 0.592573347429496
Nay   R   Stefanik, Elise NY 21st 0.6619168655633318
Yea   D   Lamb, Conor PA 18th 0.19442776478115073

A predominantly Republican coalition of lawmakers in

Politics

Senator Jeff Flake, R-Ariz., left, and Senator Chris Coons, D-De., right.

Senator Jeff Flake, R-Ariz., left, and Senator Chris Coons, D-Del., right.

The Senate Judiciary Committee cleared U.S. Supreme Court nominee Brett Kavanaugh with a caveat from Senator Jeff Flake, R-Ariz. — give the FBI a week. The nomination reported favorably from the committee by a vote of 11-10 to the floor of the U.S. Senate for a full chamber vote.

But that’s not going to happen for at least a week.

Senator Chris Coons, D-Del., cornered his friend and colleague at the end of the hall a few minutes before the committee vote was scheduled to take place. He begged Senator Flake for a week-long delay to the floor vote, tops.

Ultimately, it’s up to Majority Leader Mitch McConnell, R-Kty., whether a vote is scheduled. But Republicans know every vote counts on this nomination, particularly given Senate Democrats’ determination to hold the seat open.

Vulnerable incumbent Senator Joe Donnelly, D-Ind., announced earlier Friday he would vote “No” to confirm Judge Kavanaugh.

The nominee put on a fact-filled and passionate defense of his name. Earlier in the day, Professor Christine Blasey Ford offered her own emotional testimony, though offered nothing to corroborate the allegation.

Judge Kavanaugh, 53, serves on the U.S. Court of Appeals for the District of Columbia Circuit. President Donald Trump moved on the nomination to replace Justice Anthony Kennedy, who announced a few weeks before that he would retire, effective July 31.

The Senate Judiciary Committee began holding hearings for the confirmation of Judge Kavanaugh on September 4. Despite Democrats attempting to obstruct, pay protestors and stage outbursts, they didn’t land a glove on him.

Then, Professor Christine Blasey Ford, a liberal activist and Palo Alto University psychology professor, alleged Judge Kavanaugh attempted to rape her at a high-school party in or about 1982, when he was 17 and she was 15. She can’t be certain of the year, how she got to and from the event, and has even given various versions of the story.

There is no contemporaneous evidence.

The allegation, which has been disputed by all parties mentioned in her account, including by her own friend, was made in a letter to Senator Dianne Feinstein, D-Calif., the Ranking Member of the Senate Judiciary Committee. She withheld it for 6 weeks until after the committee held confirmation hearings.

Senator Feinstein denied she or any member of her staff leaked the letter. Professor Ford herself testified that only she, her lawyer, a Democrat representative and Senator Feinstein had access to the letter. She further testified that neither she nor her lawyer leaked it.

Mike Braun, the Republican candidate for U.S. Senate in Indiana, pounced on the announced, saying the “entire process has been an embarrassment to our democracy.”

“Donnelly’s decision to oppose President Trump’s highly qualified nominee is a grave mistake, but proves he is more concerned with standing with his liberal Democrat leaders than standing for Hoosiers,” Mr. Braun said in a statement to People’s Pundit Daily (PPD).

“I continue to strongly support Judge Kavanaugh’s confirmation to the Supreme Court.”

Sources also tell PPD that Senator Joe Manchin, D-W.Va., who is running for reelection in a state President Trump won by nearly 40 points, was leaning toward “Yes” on the confirmation before the call for the FBI to investigate the claims. Senators Lisa Murkowski, R-Ak., and Susan Collins, R-Me., are still officially undecided.

But Senator Murkowski released a statement in support of the pause.

PPD has also learned at least Senator Collins received a call from former President George W. Bush, who has stood by Judge Kavanaugh and urged her to do so, as well.

The Senate Judiciary Committee cleared U.S. Supreme

Politics

Senator Joe Donnelly, D-Ind., left, and Republican Mike Braun, right.

Senator Joe Donnelly, D-Ind., left, and Republican Mike Braun, right.

Vulnerable incumbent Senator Joe Donnelly, D-Ind., announced he will vote “No” to confirm Judge Brett Kavanaugh to the U.S. Supreme Court. The announcement comes one day after the nominee testified before the Senate Judiciary Committee to defend himself against 36-year-old, uncorroborated sexual assault allegations.

“While I would gladly welcome the opportunity to work with President Trump on a new nominee for this critically important position, if Judge Kavanaugh’s nomination comes before the full Senate for a vote under these circumstances, I will oppose it.”

Earlier Thursday, Professor Christine Blasey Ford gave emotional testimony before the committee, though offered nothing to corroborate the allegation. The nominee followed and put on a fact-filled and passionate defense of his name.

Professor Ford, a liberal activist and Palo Alto University psychology professor, alleged Judge Kavanaugh attempted to rape her at a high-school party in or about 1982, when he was 17 and she was 15. She can’t be certain of the year, how she got to and from the event, and has even given various versions of the story.

There is no contemporaneous evidence.

Mike Braun, the Republican candidate for U.S. Senate in Indiana, is pouncing on the decision.

“This entire process has been an embarrassment to our democracy as Hoosiers watched firsthand how Senator Donnelly’s liberal colleagues used uncorroborated allegations to create a media circus designed to smear and destroy Judge Kavanaugh’s reputation,” Mr. Braun said in a statement to People’s Pundit Daily (PPD). “Donnelly’s decision to oppose President Trump’s highly qualified nominee is a grave mistake, but proves he is more concerned with standing with his liberal Democrat leaders than standing for Hoosiers.”

“I continue to strongly support Judge Kavanaugh’s confirmation to the Supreme Court.”

Judge Kavanaugh, 53, serves on the U.S. Court of Appeals for the District of Columbia Circuit. President Donald Trump moved on the nomination to replace Justice Anthony Kennedy, who announced a few weeks before that he would retire, effective July 31.

The Senate Judiciary Committee began holding hearings for the confirmation of Judge Kavanaugh on September 4. Despite Democrats attempting to obstruct, pay protestors and stage outbursts, they didn’t land a glove on him.

The allegation, which has been disputed by all parties mentioned in her account, including by her own friend, was made in a letter to Senator Dianne Feinstein, D-Calif., the Ranking Member of the Senate Judiciary Committee. She withheld it for 6 weeks until after the committee held confirmation hearings.

Senator Feinstein denied she or any member of her staff leaked the letter. Professor Ford herself testified that only she, her lawyer, a Democrat representative and Senator Feinstein had access to the letter. She further testified that neither she nor her lawyer leaked it.

A vote in the Senate Judiciary Committee is scheduled for 1:15 PM EST on Friday. Senator Jeff Flake, R-Ariz., announced earlier Friday he will vote “Yes” to confirm Judge Kavanaugh. Sources tell PPD he was persuaded by the public remarks made by Senator Lindsey Graham, D-S.C., who hammered Democratic Senators for pulling “the most unethical sham” during the process.

“If you wanted an FBI investigation you could’ve come to us,” Senator Graham turned and shouted at his Democratic colleagues. “What you want to do is destroy this guy’s life, hold this seat open, and hope you win in 2020. You’ve said that. Not me.”

“You’ve got nothing to apologize for,” he said turning to the nominee.

“This is the most unethical sham since I’ve been in politics.”

Sources also tell PPD that Senator Joe Manchin, D-W.Va., who is running for reelection in a state President Donald Trump won by nearly 40 points, is leaning toward “Yes” on the confirmation. Senators Lisa Murkowski, R-Ak., and Susan Collins, R-Me., are still officially undecided.

Senator Chris Coons, D-De., is lobbying Senator Flake to change his vote.

PPD has learned at least Senator Collins received a call from former President George W. Bush, who has stood by Judge Kavanaugh and urged her to do so, as well.

Vulnerable incumbent Senator Joe Donnelly, D-Ind., announced

Politics

Sen. Jeff Flake, R-Ariz., on Capitol Hill in Washington on March 9, 2016. (Photo: AP)

Sen. Jeff Flake, R-Ariz., on Capitol Hill in Washington on March 9, 2016. (Photo: AP)

Breaking: Senator Jeff Flake, R-Ariz., will vote “Yes” to confirm Judge Brett Kavanaugh to the U.S. Supreme Court, People’s Pundit Daily (PPD) confirmed. The announcement comes one day after Judge Kavanaugh testified before the Senate Judiciary Committee to defend himself against 36-year-old uncorroborated sexual assault allegations.

The nominee put on a fact-filled and passionate defense of his name. Earlier in the day, Professor Christine Blasey Ford offered her own emotional testimony, though offered nothing to corroborate the allegation.

Judge Kavanaugh, 53, serves on the U.S. Court of Appeals for the District of Columbia Circuit. President Donald Trump moved on the nomination to replace Justice Anthony Kennedy, who announced a few weeks before that he would retire, effective July 31.

The Senate Judiciary Committee began holding hearings for the confirmation of Judge Kavanaugh on September 4. Despite Democrats attempting to obstruct, pay protestors and stage outbursts, they didn’t land a glove on him.

Then, Professor Ford, a liberal activist and Palo Alto University psychology professor, alleged Judge Kavanaugh attempted to rape her at a high-school party in or about 1982, when he was 17 and she was 15. She can’t be certain of the year, how she got to and from the event, and has even given various versions of the story. There is no contemporaneous evidence.

The allegation, which has been disputed by all parties mentioned in her account, including by her own friend, was made in a letter to Senator Dianne Feinstein, D-Calif., the Ranking Member of the Senate Judiciary Committee. She withheld it for 6 weeks until after the committee held confirmation hearings.

Breaking: Senator Jeff Flake, R-Ariz., will vote

Economy

People count money at Macy's Herald Square store during the early opening of the Black Friday sales in the Manhattan borough of New York, November 26, 2015. (Photo: Reuters)

People count money at Macy’s Herald Square store during the early opening of the Black Friday sales in the Manhattan borough of New York, November 26, 2015. (Photo: Reuters)

The the Bureau of Economic Analysis (BEA) said personal income rose $60.3 billion (0.3%) in August after a 0.3% gain in July, and wages and salaries rose by 0.5%. Disposable personal income (DPI) increased $51.4 billion (0.3%) and personal consumption expenditures (PCE) increased $46.4 billion (0.3%).

Real DPI increased 0.2% in August and Real PCE rose 0.2%. The PCE price index gained 0.1%. Excluding food and energy, the PCE price index increased less than 0.1%. The increase in personal income in August was fueled largely by increases in wages and salaries, and less-so by government social benefits to persons, and nonfarm proprietors’ income.

Personal outlays rose $47.1 billion in August and personal saving was $1,032.3 billion in August. The personal saving rate — or, personal saving as a percentage of disposable personal income — was 6.6%.

Personal income rose $60.3 billion (0.3%) in

Video

Senator Lindsey Graham, D-S.C., hammered Democratic Senators for pulling “the most unethical sham” against U.S. Supreme Court nominee Judge Brett Kavanaugh. Earlier in the day, Professor Christine Blasey Ford offered her own emotional testimony, though offered nothing to corroborate the allegation.

Judge Kavanaugh put on a fact-filled and passionate defense against sexual assault allegations leveled against him on the eve of a confirmation vote.

“If you wanted an FBI investigation you could’ve come to us,” Senator Graham turned and shouted at his Democratic colleagues. “What you want to do is destroy this guy’s life, hold this seat open, and hope you win in 2020. You’ve said that. Not me.”

“You’ve got nothing to apologize for,” he said turning to the nominee.

“This is the most unethical sham since I’ve been in politics.”

Senator Graham also established that Senator Dianne Feinstein, D-Calif., the Ranking Member of the Senate Judiciary Committee, met with Judge Kavanaugh at the time she was withholding a letter by Professor Ford making the allegation. Professor Ford testified that the letter was leaked to the media without her consent.

Senator Lindsey Graham hammered Democratic senators for

Politics

Supreme Court nominee Brett Kavanaugh looks on during his Senate Judiciary Committee confirmation hearing September 4, 2018.

Supreme Court nominee Brett Kavanaugh looks on during his Senate Judiciary Committee confirmation hearing September 4, 2018. (Photo: Reuters)

U.S. Supreme Court nominee Judge Brett Kavanaugh put on a fact-filled and passionate defense of his name after sexual assault allegations were leveled against him on the eve of a confirmation vote.

“This confirmation process has become a national disgrace,” Judge Kavanaugh said with the raw emotion and righteous indignation reminiscent of U.S. Supreme Court Justice Clarence Thomas. “You’ve replaced advise and consent with search and destroy.”

Earlier in the day, Professor Christine Blasey Ford offered her own emotional testimony, though offered nothing to corroborate the allegation.

Judge Kavanaugh, 53, serves on the U.S. Court of Appeals for the District of Columbia Circuit. President Donald Trump moved on the nomination to replace Justice Anthony Kennedy, who announced a few weeks before that he would retire, effective July 31.

The Senate Judiciary Committee began holding hearings for the confirmation of Judge Kavanaugh on September 4. Despite Democrats attempting to obstruct, pay protestors and stage outbursts, they didn’t land a glove on him.

Then, Professor Ford, a liberal activist and Palo Alto University psychology professor, alleged Judge Kavanaugh attempted to rape her at a high-school party in or about 1982, when he was 17 and she was 15. She can’t be certain of the year, how she got to and from the event, and has even given various versions of the story. There is no contemporaneous evidence.

The allegation, which has been disputed by all parties mentioned in her account, including by her own friend, was made in a letter to Senator Dianne Feinstein, D-Calif., the Ranking Member of the Senate Judiciary Committee. She withheld it for 6 weeks until after the committee held confirmation hearings.

Sources tell People’s Pundit Daily (PPD) that the White House was very pleased with Judge Kavanaugh’s opening statement at the hearing. He decided to seize control of his statement and defense.

This article will be updated as the hearing transpires.

U.S. Supreme Court nominee Brett Kavanaugh put

Markets

Gross domestic product (GDP) graphic concept. (Photo: AdobeStock)

Gross domestic product (GDP) graphic concept. (Photo: AdobeStock)

Equity markets have been on defense most of the week, with investors confronted by multiple headwinds as we get ready to close the books on the third quarter (Q3).

Unresolved trade issues with China and Canada; Oil prices rising to the highest level is 4 years; and concerns that the Federal Reserve may be raising rates faster than anticipated have capped Market gains from extending into double digits for the quarter.

Profit Taking over the last few days has done little if any damage to the market uptrend following the April lows, as the S&P 500 (INDEXCBOE: .INX) remains well above its 50 and 200 day moving averages while still sporting a handsomely up trending channel.

S&P 500 Chart 9-27-18.

S&P 500 Chart 9-27-18.

Both the S&P 500 and NASDAQ Composite (INDEXNASDAQ: .IXIC) have QTD gains of +6.5%. NASDAQ has been straddling the 8000 benchmark most of the month after posting an All Time High of 8100 on the last day of August.

The S&P 500 closed at an ATH of 2930 exactly 1 week ago and has closed above 2900 every day but 1 over the last 2 weeks.

Both have been subject to volatility in the technology space while the S&P 500 has been aided of late from good buying in the banks as the 10 year yield has moved above 3% as well as a 2 week rally in Oil stocks as the commodity has rallied to a 4 year high.

NASDAQ Chart 9-27-18.

NASDAQ Chart 9-27-18.

The Dow Jones Industrial Average (INDEXDJX: .DJI) has outperformed during Q3 with gains of +8.7%. The Mega Cap Multinational stocks in the DJIA have benefitted from both the leveling off in the US Dollar over the last 6 to 8 weeks as well as progress in trade negotiations with Mexico and the European Union (EU).

The Dow Jones Transportation Average has also had stellar performance in Q3 with gains of +9.8% QTD.

One week ago today, the S&P 500 and the Dow Jones posted fresh All Time Highs. After 4 days of healthy consolidation markets have stabilized. Most significantly, 1 hour into trading Thursday, stocks have recouped the losses following the FOMC interest rate hike yesterday afternoon.

This morning, the final revision of Q2 GDP held steady at 4.2%. Backing that up, August durable goods came in at +4.5%, while wholesale and retail inventories reported gains from August of +0.8% and +0.7%, respectively.

All three of these reports will be a positive contribution to Q3 GDP, for which we will get the initial reading 1 month from today.

One week ago today, the S&P 500

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