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Fed Continues To Flood The Repo Market
The Market Bull 2019

 
 
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The Market Bull – December 6, 2019

The major averages closed with large gains on better than expected data. The Fed continues to flood the Repo Market. The trade war goes quiet. Since Monday the major averages show fractional change with the Standard and Poors 500 Index up just 2 points while the NASDAQ slipped 16 points.

The Mortgage Bankers Association reports that mortgage activity fell 9.2% last week as refi’s plunged 15.6% and purchase apps increased .9%. The 30-year contract rate for a jumbo loan was up slightly to 3.91%.

The Bureau of Labor Statistics reports 266,000 new jobs in November handily beating expectations of 182,500. September and October were revised higher by a combined 41,000. As expected, the settling of the UAW GM strike helped to boost manufacturing by 54,000. The unemployment rate slipped to 3.5%. Average weekly hours were unchanged at 34.5, average hourly earnings increased .2%. A very solid report that pushed the 3-month average job creation figure to 205,000 its first showing over 200,000 since January. The one real surprise in the report is that so far, the usual holiday retail hiring surge is a no show.

Consumer Credit also beat expectations with an 18.9 billion Dollar increase in October. Revolving or credit card debt had its best showing in 3-months with a 7.9 billion increase. Non-Revolving debt essentially student and auto loans advanced 11 billion.

Standard and Poors 500 Index closed at: 3,145.91 up 28.48
NASDAQ finished the day: 8,656.53 up 85.83
Gold ended trading at: $1,465.30 down $17.80

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