The Dow opened the week slightly higher with a gain of 14 points to 26,949 on light trading volume. Both the S&P 500 and NASDAQ pulled back by a fraction in what was a quiet day of trading.
It was another historic weekend in so many ways. Unfortunately, one of them was the epic collapse of my beloved WSU Cougar football team. In honor of this moment we posted a video on our Facebook page from the movie Madagascar. Go to the 30 second mark and you can hear the song “I like to Coug it - Coug it” in all its glory.
German industrial production is slowing to levels not seen since the 2008 financial crisis as the manufacturing PMI reading fell from 43.5 to 41.4. Phil “Mister” Smith who is IHS Markit’s principle economist said, “the numbers are simply awful” and noted that trade issues, car industry woes (Thank you Tesla!) and Brexit are paralyzing business transactions. Add to that the news this morning that Thomas Cook, which is a British travel company founded in 1841 and owns jets, hotels and boats around the globe could not make debt payments and went belly up leaving over 150,000 UK travelers stranded in various parts of the earth. Maybe Airbnb will buy them out.
Meanwhile the South China Morning Post reported that Sino pork prices are now up 80% and people are getting upset as over 38% of China’s pig population has been wiped out due to swine flu. As a result, China has suddenly reversed course and pork imports this past month are up 75%. October 1st will be China’s 70th birthday and the CCP does not want to celebrate the event with food riots. Pork is a huge source of food in China and the SCMP posted a video of several people arguing over a small piece of pork at a store. The feeling is that this issue will continue to get worse before it gets better because 37% of sows have been lost which means that piglet production will suffer until the sow population recovers.