The Market Bull – October 2, 2019
Generally disappointing data sent the major averages below key technical support levels as they closed with significant losses. A combination of impeachment fears, a dramatic escalation of tariffs on European goods and continued political infighting led the declines.
The Mortgage Bankers Association reports that its Mortgage Activity Index gained 8.1% last week as Refi’s jumped 14.2% and Purchase Apps advanced .9%. The 30-year Jumbo Loan rate slipped fractionally to 3.98%.
Payroll company ADP reported disappointing private sector jobs data after September saw a meager 135,000 new jobs created. A 5th consecutive month of weak jobs growth, the 3-month moving average advanced to 145,000. Uncertainty from the ongoing trade war was fingered as the likely culprit, political infighting and the impeachment process will only exacerbate this trend.
Auto Data Corporation reported 17.2 million vehicles sold on a seasonally adjusted annualized basis in September, slightly ahead of expectations, as both car and light truck sales advanced. Domestic manufactures saw gains while imports were unchanged. Tesla reported record deliveries but remains a footnote in the grand scheme of things. With 3-months to go, 2019 is looking to be a slow year for sales with a 10% decline expected over 2018.
Standard and Poors 500 Index closed at: 2,887.61 down 52.64
NASDAQ finished the day: 7,785.25 down 123.44
Gold ended trading at: $1,506.00 up $17.00