The Market Bull – January 3, 2019
The major averages plunged on the 2nd trading day of the year, closing with significant losses. Supposedly spooked by Apples quarterly announcement and large miss on the revenue side. As good an excuse as any I suppose, the day’s economic data was mixed.
The Mortgage Bankers Association mortgage activity index fell for a 3rd week down 8.5% as refi’s plunged 10.6% and purchase apps slipped 7.6%.
The 30-year contract rate for a jumbo loan jumped 13 basis points to 4.72%.
Payrolls company ADP reported a better than expected 271,000 new jobs in December, handily beating expectations of 180,000. This closed out 2018 with an impressive just over 200,000 new jobs per month on average for the series beating 2016 and 2017.
The official Bureau of Labor Statistics or BLS jobs report is due tomorrow.
The Institute of Supply Management New York Purchasing Managers Index slipped 2.4 points to a still very strong 65.4 in December.
Employment fell hard for a second month, price data also slipped substantially, falling to a 6-month low.
The Institute of Supply Management Manufacturing Index missed significantly falling 5.2 points to 54.1 in December.
New orders plunged 11 points and declines were broad based as the series hit a 25-month low.
As the markets plunge and interest rates rise the Saint Louis Fed Financial Stress Index continues to march higher hitting -.51 at the end of December a nearly 3-year high.
Standard and Poors 500 Index closed at: 2,447.89 down 62.14
NASDAQ finished at: 6,463.50 down 202.43
Gold ended trading at: $1,296.40 up $12.30