![\"Average](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-07-06-wages.png?w=525&ssl=1\")
<\/p>\nJune average hourly earnings growth came in flat at 2.74% for Total Private sector and 2.72% for Production and Non-supervisory Employees. This suuports the argument that underlying inflation remains benign, easing pressure on the Fed to accelerate interest rates.<\/p>\n
<\/p>\n
The S&P 500 rallied off its long-term rising trendline. Follow-through above 2800 would suggest another primary advance with a target of 3000.<\/p>\n
![\"S&P](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-07-06-spx.png?w=525&ssl=1\")
<\/p>\n
The Nasdaq 100 respected its new support level at 7000, signaling a primary advance. The rising Trend Index indicates buying pressure. Target for the advance is 7700.<\/p>\n
![\"Nasdaq](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-07-06-ndx.png?w=525&ssl=1\")
<\/p>\n
The Leading Index from the Philadelphia Fed is a healthy 1.51% for May. Well above the 1.0% level that suggests steady growth (falls below 1.0% are cause for concern).<\/p>\n
![\"Leading\"](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-07-06-leading.png?w=525&ssl=1\")
<\/p>\n
Our estimate of annual GDP growth \u2014 total payroll x average weekly hours worked \u2014 is muted at 1.91% but suggests that earnings growth will remain positive.<\/p>\n
![\"Real](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-07-06-realgdp.png?w=525&ssl=1\")
<\/p>\n
Personal consumption figures for Q1 2018 show growth in consumption of services is slowing but durable goods remain strong, while nondurable goods are steady.<\/p>\n
![\"Consumption](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-07-06-consumption.png?w=525&ssl=1\")
<\/p>\n
Declining consumption of nondurables normally coincides with a recession but is often preceded by slowing durable goods \u2014 below 5.0% on the chart below \u2014 for several quarters.<\/p>\n
![\"Consumption](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2018\/2018-07-06-consumption-roc.png?w=525&ssl=1\")
<\/p>\n
Conclusion: Expect further growth but be cautious of equities that are vulnerable to escalating trade tariffs.<\/p>\n
We live in a global economy, but the political organization of our global society is woefully inadequate. We are bereft of the capacity to preserve peace and to counteract the excesses of the financial markets. Without these controls, the global economy, is liable to break down.<\/p>\n
~ George Soros: The Crisis of Global Capitalism (1998)<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"
June average hourly earnings growth came in flat at 2.74% for Total Private sector and 2.72% for Production and Non-supervisory Employees. This suuports the argument that underlying inflation remains benign, easing pressure on the Fed to accelerate interest rates. The S&P 500 rallied off its long-term rising trendline. Follow-through above 2800 would suggest another primary … <\/p>\n