The Market Bull – December 18, 2018
The major averages unable to hold their large early gains closed slightly higher despite generally good data including a rare positive real estate related report.
Housing starts increased 3.2% to 1.256 million units annualized in November, beating expectations and snapping a pair of losses. Permits advanced 5% to 1.328 million units annualized.
One of the better reports for this series in some time, starts remain 3% lower than a year ago. At the regional level activity was led by the South and the Northeast. The West saw starts fall 14.2% for the month and 18.4% from a year ago.
The October TIC Report or Treasury International Capital Report showed foreigners to be willing buyers of our securities with a 31.3 billion Dollar advance.
Equities or stocks sold off hard again and marked a 6th consecutive decline. Agency bonds were very popular and to a lesser extent Corporate and Treasury issues.
The Bay Area saw a 17% decline in Home Sales from a year ago in November, while inventory for sale increased 27% on the same basis. Looking at total sales and they are running some 5% below last year’s pace. This marks a second consecutive notable decrease in sales and increase in inventory for sale for the Bay Area.
Standard and Poors 500 Index closed at: 2,546.16 up .22
NASDAQ finished at: 6,783.91 up 30.18
Gold ended trading at: $1,253.30 up $1.50
This is Caleb Lawrence Registered Investment Adviser I can be reached directly 831-334-5318 or stop by my office 5321 Scotts Valley Drive in the Scotts Valley Plaza, Suite 202, Scotts Valley, Ca, 95066.
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