US Stock Market Overview – S&P 500 Notches Up 13% Quarterly Gain

US stock prices rallied and closed on the high, capping off a robust month and solid quarter. The S&P 500 index posted the best three-month start to a year since 1998, rising 13% for the year through March of 2019. Most sectors were higher on Friday, led by Heath care and Technology. Energy and Real-estate bucked the trend. New that the White House is looking for a 50-basis point cut in interest rates helped buoy the markets into the close.

Kudlow Call for a Cut

White House economic advisor Larry Kudlow was on CNBC telling investors that the White House wants the Federal Reserve to cut interest rates by 50 basis points. Kudlow made it clear that he saw the Fed as independent but believes that the Fed should not let the economy drop and should buoy the economy before it begins to slip any further. Kudlow even said this could be viewed as preventative measure. While the economy was growing above trend, data released this week showed that the Q4, only rose by 2.4% compared to the prior estimate of 2.6%. Expectations are that Q1, will be close to 1.3%.

The Fed recently suggested that a hike in borrowing costs may not be needed for the rest of the year. Though Fed Chairman Jerome Powell highlighted slowdowns in overseas economic growth, the Fed did not indicate at its March meeting that rate cuts would be necessary.

Home Sales Rise

New-home sales increased across the United States. New-home sales were up 0.6% in February from the prior year, and their pace remains well below the elevated levels seen before the 2007-09 financial crisis and recession.

Consumer Spending Rebounds Less than Anticipated

US consumer spending rebounded less than expected in January and incomes rose modestly in February. Consumer spending edged up 0.1% as households cut back on purchases of motor vehicles. Data for December was revised down to show consumer spending falling 0.6%. Expectations was for consumer spending to increase 03% in January. When adjusted for inflation, consumer spending gained 0.1% in January.

Lyft Blasted Off

Lyft Inc, began trading on Friday with a very successful IPO. The shares surged opening at $87.24 a share, up 21%, before giving back some gains. Lyft priced its IPO at $72 a share late Thursday. The IPO raised $2.3 billion, marking the first big tech IPO of 2019.

May is on the Ropes

During the afternoon trading session word came out that the UK House of Commons voted down the agreement PM May negotiated with the EU by a tally of 344 votes to 286. This was the third consecutive rejection. Another referendum to revoke the exit altogether could be in the card as well as a general election or a sudden breakaway from the EU. The way things have been left, the UK will leave the bloc on April 12 without any agreement.