The Market Bull – January 8, 2020
Despite a few errant missiles the confrontation with Iran seems to be cooling down helping the major averages close with modest gains.
The Mortgage Bankers Association reports that mortgage activity jumped 13.5% last week as refi’s surged 24.6% snapping a string of notable declines, purchase apps increased 3%. The 30-year rate for a jumbo loan fell fractionally to 3.88%. That said this series seems to be rolling over based on its 12-week moving average.
ADP reported a better than expected 202,000 new private sector jobs in December. Despite the series finishing the year on a high note. Payroll gains still moderated quite a bit in 2019, averaging 163,000 jobs per month compared with an average gain of 219,000 in 2018. The official Bureau of Labor Statistics or BLS employment report is due Friday and is expected to show 160,000 new jobs.
Consumer Credit advanced 12.5 billion in November, lower that the 15.5 billion expected. Non-revolving debt, essentially student and auto loans provided all of the boost and then some with a 14.9 billion gain. Revolving or credit card debt fell 2.4 billion as consumers put away their credit cards going into the holiday shopping season. Will see if consumers hit their credit cards hard in December to make up for this. With the latest Senior Loan Officer Survey showing 10.4% of banks tightening credit card lending standards, December could well disappoint.
Standard and Poors 500 Index closed at: 3,253.05 up 15.87
NASDAQ finished the day: 9,129.24 up 60.66
Gold ended trading at: $1,557.50 down $16.80