The Market Bull – November 18, 2019
The major averages closed about even to begin the week. With 92% of the S&P 500 companies having reported, 75% have beaten earnings so far. While 60% have beaten revenue estimates. Ok, but not great results.
The National Association of Homebuilders Index or NAHB slipped a point to 70 in November. All of the sub-components were strongly positive above 50. At the regional level the West was a real standout coming in at 85. This series continues to trend steadily higher as it has done since the beginning of the year.
The Treasury International Capital Flows or TIC report for September was a strongly positive 49.5 billion. Treasury Notes and Bonds sold off again. Agency and Corporate debt issues were both popular with foreign investors along with equites to a lesser extent.
China quietly bailed out its 5th bank this year ponying up 2.1 Billion Dollars to rescue Harbin Bank. Rising bad loans from the country’s 12+ year debt binge was the primary culprit. With the State taking a 48% ownership interest in the troubled institution. Add the ongoing trade war, a slowing global economy and significant civil unrest in Hong Kong and China has its hands full.
Standard and Poors 500 Index closed at: 3,122.03 up 1.57
NASDAQ finished the day: 8,549.94 up 9.11
Gold ended trading at: $1,471.70 up $3.20