The Market Bull – December 16, 2019
The major averages begin the week with modest gains on little real news. Talk of a trade deal settlement and impeachment goes quiet.
The New York Fed Manufacturing Index gained .6 points to 3.5 in December on improvement in inventories and capital expenditure plans. Prices paid at 15.2 were at their lowest level since early 2016. While the top line figure is positive and surprisingly stable of late. Survey respondents noted uncertainty because of the trade war and the economic outlook.
The National Association of Home Builders or NAHB Index jumped 6 points in December to 76, reaching a more than 20-year high for the series. Gains were broad based and particularly strong for the western region, single family sales and the outlook for the next 6-months.
Treasury International Capital or TIC flows gained 32.5 billion in October with solid interest in agency bonds. Treasury bonds and notes, corporate bonds and equities all sold off for the month. Agency bonds have been well bid by foreigners for several months now. Foreign governments continue to be significant net sellers of treasuries disposing of some 250 billion in Uncle Sam’s best paper year to date.
Standard and Poors 500 Index closed at: 3,191.45 up 22.65
NASDAQ finished the day: 8,814.23 up 79.35
Gold ended trading at: $1,481.00 down $.20