The Market Bull – February 25, 2020
Another day of large losses on the Street despite mixed economic data, as Coronavirus fears continue to spook the markets. Another Bernie Caucus fiasco?
Case/Schiller reports that home prices advanced for a second month on a year ago basis up 2.9% in December. Of the 20 metro areas in the series gains were led by Phoenix +6.5%, Charlotte NC up 5.3% and Tampa FL with a 5.2% gain. Chicago +1%, New York up .9% and San Francisco with a 2% gain showed the weakest price appreciation. Of note Chicago, Las Vegas, Miami and Washington all remain below their previous highs set in 2006. At the other end of the scale Denver, Boston and San Francisco are all well above their previous highs.
The Richmond Fed index plunged 22 points in February as it continues its extra volatile trend of the last 8-months or so. Declines were broad based with new orders falling 23 points. Despite the recent progress with respect to trade agreements and the Phase 1 deal with the Chinese. The Coronavirus has Black Swan potential and remains a significant threat to manufacturing and the global economy at present.
Standard and Poors 500 Index closed at: 3,128.21 down 97.68
NASDAQ finished the day: 8,965.61 down 255.67
Gold ended trading at: $1,634.70 down $41.90