The Market Bull – January 18, 2019
Stocks close out another big week with large gains on little real news. Since Monday the Standard and Poors 500 Index increased 91 points or 3.53%, while the NASDAQ advanced 226 points or 3.26%.
Industrial Production gained .3% in December despite a large drop in utilities output on strength in Autos and Parts production and to a lesser extent mining. Capacity utilization increased fractionally to 78.7%.
December’s sharp market losses and the government shutdown dented consumer sentiment as the University of Michigan index fell 7.6 points to 90.7.
The California Association of Realtors or CAR reports that home sales fell for an 8th consecutive month in December down 13% on a year ago basis, inventory climbed 31% on the same basis. For the year as a whole 2018 marked the first annual decline in sales in 4-years with 372,260 homes sold statewide. Other highlights from the report include, A fifth month in a row that sales were below 400,000 in December, and the lowest level of sales sold since January 2015. While inventory for sale increased sharply over the year it remains fairly low at just 3.5 months’ supply.
Standard and Poors 500 Index closed at: 2,670.71 up 34.75
NASDAQ finished the day: 7,157.23 up 72.76
Gold ended trading at: $1,280.40 down $11.90