The Market Bull – November 5, 2019
Major averages finish about even. 4th quarter earnings are tracking a 2.7% decline and look to mark a 3rd consecutive quarter of falling earnings.
Factory Orders missed expectations in September with a .6% decline. Durable goods were particularly weak falling 1.2%. The proxy for business spending non-defense capital goods ex-aircraft slipped .7%. some of the reasons for the weakness include past appreciation in the U.S. dollar, a weaker global economy, and the trade war with China. Boeings problems with the 737 Max were also mentioned.
The 4th quarter Senior Loan Officer Survey shows that loan standards tightened after 2 quarters of weaker standards. Demand for retail and consumer loans continues to increase while commercial and industrial loan demand slipped significantly, marking a 5th consecutive quarter of falling demand.
The Institute of Supply Management Nonmanufacturing or services index advanced 2.1 points to 54.7 in October to beat expectations slightly. Improvement was broad based; price data slipped a little. This series accounts for about 88% of total economic activity and has trended lower since the beginning of the year.
Standard and Poors 500 Index closed at: 3,074.62 down 3.65
NASDAQ finished the day: 8,434.68 up 1.48
Gold ended trading at: $1,486.40 down $24.70