Analysis: Impacts of tariffs on the Dow Jones and consumer spending

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ON 107 IN EAST AT DEPOT ROAD. THERE WERE IMPROVEMENTS ON THE STOCK MARKET TODAY, WITH THE DOW JONES UP MORE THAN 400 POINTS AHEAD OF PRESIDENT TRUMP’S TARIFFS TAKING EFFECT ON WEDNESDAY. THIS COMES AFTER WEEKS OF LOSSES. MIKE ARMSTRONG, PRESIDENT OF THE ARMSTRONG ADVISORY GROUP, JOINS US LIVE NOW. AND MIKE, THANK YOU FOR BEING HERE. WE WANT TO JUMP RIGHT INTO THE QUESTIONS. SO WHAT MIGHT IT SIGNAL THAT THE DOW MADE A BOUNCE BACK TODAY AFTER OPENING IN THE RED THIS MORNING. YEAH. YOU KNOW WHAT I THINK THAT WE ARE A LOT OF READING BEING DONE OF THE TEA LEAVES HERE. AND I THINK NOT OFTEN ALL THAT ACCURATELY. I THINK THE LESSON THAT I’M TAKING FROM THE LAST TWO WEEKS IS NOBODY KNOWS WHAT’S GOING TO COME NEXT. AND. INVESTORS PROBABLY SHOULDN’T BE JUMPING AT ONE NEWS STORY FOR THE OR THE OTHER. I’LL COVER, YOU KNOW, BRIEFLY. A WEEK AGO SUNDAY, WE HAD THE WALL STREET JOURNAL REPORTING THAT, ACCORDING TO SOURCES WITHIN THE WHITE HOUSE, THERE WERE UNLIKELY TO BE ANY SECTOR SPECIFIC TARIFFS. THREE DAYS LATER, THE TRUMP ADMINISTRATION ANNOUNCED SPECIFICALLY AUTO SECTOR TARIFFS ON IMPORTED AUTOS AND AND PARTS. LATER THAT DAY, COMMENTARY THAT, YOU KNOW, THE RETALIATORY TARIFFS WOULD NOT BE ALL THAT SIGNIFICANT. THOSE THEN CAME IN OVER THE WEEKEND, AND RUMORS NOW ARE THAT THEY ARE GOING TO BE WIDE SWEEPING ON MOST COUNTRIES ACROSS THE GLOBE. AND SO I DON’T KNOW IF THERE’S A BIT OF A BUY THE DIP MENTALITY GOING ON, BECAUSE WE DID HIT A 10% CORRECTION AGAIN ON THE S&P 500. IN INTRADAY TRADING TODAY. BUT I’LL TELL YOU JUST A LOT OF REACTIONS TO NEWS STORIES THAT SO FAR HAVE ONLY, YOU KNOW, HAD NOT HAD A GREAT TRACK RATE OF BEING ACCURATE, SO UNCERTAIN. AND IT’S KIND OF JUST WAIT AND SEE WHAT ACTUALLY HAPPENS. LET’S TALK ABOUT HOUSEHOLD FINANCES. THERE IS A WORRY THAT THE IMPLEMENTATION OF TARIFFS COULD CAUSE PEOPLE TO HOLD BACK ON SPENDING. IF PRICES DO INCREASE. SO HOW SHOULD PEOPLE BE MANAGING THEIR FINANCES IN THE SHORT TERM BEFORE ANY IMPACTS OF THIS? YEAH. YOU KNOW, I HESITATE TO SAY PULL PURCHASES FORWARDS. I’VE OBVIOUSLY GOTTEN A FEW QUESTIONS FROM FOLKS ABOUT CARS AND THINGS LIKE THAT. LIKE THEY MIGHT NEED TO REPLACE ONE IN THE NEXT COUPLE OF YEARS. MY BEST OFF DOING IT NOW, AND THAT’S A REALLY TOUGH DECISION BECAUSE OBVIOUSLY IT’S A BIG PURCHASE TO BE. FRONT RUNNING HERE AND ASSUMING THAT PRICES ARE GOING TO GET HIGHER. I THINK THE MAIN THING FOR INDIVIDUAL HOUSEHOLDS IS, YOU KNOW, LOOK AT YOUR DEBT AND REALLY GET A GOOD CONTROL OF IT WHILE YOU ARE STILL IN A DECENT FINANCIAL POSITION. ATTACKING THAT HIGH, HIGHER INTEREST DEBT FIRST BEFORE GOING AFTER THINGS LIKE A MORTGAGE IS ALWAYS A TOP PRIORITY. BUT YOU KNOW, WE’RE ALREADY STARTING TO SEE SOME OF THOSE SIGNS IN TERMS OF CRACKS IN THE FOUNDATION OF THE CONSUMER SPENDING SCENARIOS. WE GET A WE GET A REPORT MONTHLY ON CONSUMER SPENDING. SEVERAL IN FACT, AND BOTH MANY OF THEM SHOWED DROPS OFF IN SPENDING PRETTY SIGNIFICANT IN THE MONTHS OF JANUARY AND FEBRUARY. NOW, WAS THAT DUE TO TARIFF RUMORS AND IMPLEMENTATION, WAS IT DUE TO FLU SEASON AND WILDFIRES OUT IN CALIFORNIA? IT’S REALLY TELL RIGHT NOW. AND SO THE NEXT FEW MONTHS OF DATA ARE GOING TO BE REALLY CRITICAL WHEN TRYING TO, YOU KNOW, PUT TOGETHER YOUR PIECES OF THE PUZZLE OF THIS ECONOMY. AND I’M SURE YOU WILL BE KEEPING A CLOSE WATCH ON THAT AS WELL. MIKE ARMST