fbpx Accept-Encoding: deflate, gzip

Markets Surge Closing With Large Gains
The Market Bull 2020

 
 
00:00 / 2:29
 
1X
 

The Market Bull – February 4, 2020

As the Coronavirus fades from the headlines the markets surge closing with large gains on generally positive economic data. Tesla shorts get crucified.

AutoData Corp reports a slightly better than expected 17 million new vehicle sales in January on an annualized basis. Light truck and SUV sales led the advance up 3.1% as car sales slipped 5.1%. Domestic manufacturers advanced as imports came in flat. Car sales were 14.6% lower than in January 2019 and were the lowest number of annualized car sales on record. Despite Tesla’s booming stock price it’s sales remain a trivial part of the total picture. One of the more interesting data points in the report, in 2007, 45% of vehicles were sold to people under the age of 45, and in 2017 this number dropped to just 28%.

The Institute of Supply Managers New York report jumped 6.7 points in January to 45.8 a little shy of a neutral reading of 50. The details were unremarkable as this series struggles to stay above 50 for a 9th month.

Factory orders surprised to the upside in December with a 1.8% gain, more than double expectations. A large jump in durable goods orders and to a lesser extent non-durable goods led the advance. The proxy for business spending non-defense capital goods ex-aircraft slipped .8% and has been weak for 5 of the last 6-months. Going forward and the 737 Max fiasco and Coronavirus will both take their toll on this series.

Standard and Poors 500 Index closed at: 3,297.59 up 48.67
NASDAQ finished the day: 9,467.97 up 194.57
Gold ended trading at: $1,588.60 down $23.80

error

Enjoy this blog? Please spread the word :)