The Market Bull – November 21, 2018
Generally positive data sent the major averages into the final hour with small gains to finish a bruising holiday shortened week.
The Mortgage Bankers Association reports that mortgage activity fell .1% last week as refi’s dropped 5% and purchase apps increased 3.1%. The 30-year contract rate for a jumbo loan fell ten basis points to 4.88%. One of the better real estate related reports of late, despite its lack of significance.
Durable goods orders fell 4.4% in October on a second large decline in non-defense capital goods. The proxy for business spending non-defense capital goods ex-aircraft was unchanged for the month. A volatile series 1-month means little. That said durable goods orders have been week since April.
Existing home sales beat expectations in October with a 1.4% increase to 5.22 million units annualized, snapping a string of 6 consecutive declines. Sales increased in all regions except the Midwest. Month’s supply slipped to 4.3. The median price fell .6% to $255,400 a 4th consecutive decline.
One of the items that always surprised me about crypto currencies was that they weren’t deemed to be a security originally. While the first regulator to tackle the issue declared them a commodity a while back. It wasn’t until last week that the SEC or Securities and Exchange commission brought charges involving a lack of securities registration to a couple of ICO’s or Initial Coin Offerings. Frankly I’m surprised it’s taken this long as the SEC definition of a “security” is extremely broad and only really makes allowances for currency and postage stamps.
Standard and Poors 500 Index closed at: 2,649.93 up 8.04
NASDAQ finished the day: 6,972.25 up 63.43
Gold ended trading at: $1,226.30 up $5.10
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