The Federal Reserve’s decision in early 2019 to pause on interest rate hikes is widely credited as a key factor in the stock market’s U-turn this year following the sharp correction in equities in late-2018. But the recent uptick in the Effective Federal Funds rate (EFF) suggests that the central bank is still tightening monetary policy and perhaps laying the groundwork for another rate hike.
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Will the Supreme Court’s decision on the Census alter elections? NY Times
ISIS claims responsibility for Sri Lanka bombings: New Yorker
N. Korea’s Kim Jong-un visits Russia for summit with Putin: BBC
Fed’s key interest rate continues to rise: CNBC
UK will reportedly block China’s Huawei from core 5G network: Reuters
New US home sales rose to 1-1/2 year high in March: CNBC
US home prices rose 4.9% year-over-year in February: HousingWire
Fed’s Fifth District mfg activity moderated in April: Richmond Fed
S&P 500 and Nasdaq close at record highs: WSJ

This week’s initial report on US gross domestic product for the first quarter is expected to post a mild slowdown, according to the median nowcast for a set of estimates compiled by The Capital Spectator. Several of the nowcasts foresee a slight pickup in growth and so it’s premature to rule out a degree of firming for Q1. But with some of the estimates calling for the slowdown to continue, it’s safe to say that there’s enough variability in the numbers to keep the crowd guessing until the end of the week, when the Bureau of Economic Analysis publishes its “advance” GDP report on Friday, April 26.
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Social Security’s trust funds projected to nearly run dry in 2035: CNN
Dem presidential candidates divided on question of Trump impeachment: Reuters
Fed may be inclined to tolerate bubble risk to keep expansion alive: Bloomberg
Oil prices rise to 6-month high as Trump Ends waivers for Iran’s crude: WSJ
Herman Cain withdraws from consideration for a seat on Fed board: USA Today
US growth continued to slow in March: Chicago Fed Nat’l Activity Index (3-mo avg):

Real estate investment trusts (REITs) in the US tumbled last week, posting the biggest setback for the major asset classes during the shortened trading week that ended on April 18, based on a set of exchange traded funds. The loss, the deepest for this corner of the market since a plunge late last year, follows a strong upside run for REITs in 2019.
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Death toll in Easter bombing in Sri Lanka rises to 290: CNN
Trump administration set to end waivers for nations importing Iranian oil: Reuters
Oil prices rise as market prepares for end of Iranian import waivers: CNBC
Comedian Zelensky wins presidency in Ukraine: BBC
House Oversight Committee Chairman expects impeachment hearings: WE
US housing starts fell 14.2% in March vs. year-ago level — deepest loss in 8 years:

● The Technology Fallacy: How People Are the Real Key to Digital Transformation
By Gerald C. Kane, et al.
Q&A with authors via publisher (MIT Press)
Q: The data you collected over a period of four years required surveying over 16,000 people who have experienced and responded to digital disruption. What did you learn about why some organizations are struggling to respond effectively to it?
A: We asked survey respondents to identify the biggest barriers to digital transformation facing their organization. The most common response was that organizations were their own worst enemy. Internal issues such as lack of agility, complacency, and inflexible culture were reported as the biggest barriers. This finding aligns with the key thesis of our book that technology is not the most important nor the most difficult part of digital transformation. Instead, the more pressing issue is how an organization adapts its culture, strategy, leadership, and talent to operate effectively in a digital world.
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Poring over ETFs in search of funds that appear to be deeply discounted relative to fair value is a task that continues to reveal a commodities-heavy list. Although valuing commodities is a gray area (primarily because there are no cash flows to analyze), using a proxy for value based on trailing 5-year return points to this asset class in no uncertain terms.
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Mueller report reveals dysfunctional Trump White House: Politico
Wall Street yawns over release of Mueller report: WE
Democrats consider road ahead after release of Mueller report: WSJ
Turkey looks to Trump to avoid US sanctions over Russia missile deal: Reuters
Report finds new NAFTA law would bring modest boost to US growth: CNBC
US retail sales in March post strongest monthly gain in 18 months: MW
Jobless claims in US slip to new 50-year low: CNBC
Philly Fed Index reflects slower growth in April; outlook falls to 3yr low: MW
US Composite PMI falls to 31-mo low in Apr, signaling slow growth: IHS Markit

Suddenly it’s a tough time to own health care stocks. What’s changed? In a word, politics.
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