The Market Bull – January 27, 2020
The major averages close with large losses, Chinese flu spreads and fatalities jump. While serious it is not the end of the world as the markets suggest.
New home sales missed expectations in December falling .4% to 694,000. A 3rd consecutive sales decline and 4th decline in the last 6-months. The median price advanced 3.6% to $323,500, months’ supply increased to 5.7, a little high. Previous months sales were revised lower. This series is clearly weakening and looks to be establishing a negative trend. At the regional level things are a little different with the West still showing considerable strength. Year ago comparisons remain favorable with sales up 23%.
The Texas regional manufacturing survey advanced 3 points in January to -.2. A 4th month in the red for the series. Production and new orders increased while employment slipped. Price data fell and indicates low inflationary pressures. Lower trade tensions should help manufacturing going forward.
Standard and Poors 500 Index closed at: 3,243.63 down 51.84
NASDAQ finished the day: 9,139.31 down 175.60
Gold ended trading at: $1,581.60 up $9.70