The Market Bull – February 4, 2019
Despite mixed data the major averages closed today with modest gains. The Institute for Supply Management New York purchasing managers’ report slipped 2-points to 63.4 in January.
While still strong this series has fallen for 5 consecutive months. Quantity of purchase went negative at 44.7, falling more than 30-points since September. Price data increased to a 4-month high.
Factory orders fell for a 2nd month in November, down .6% on weakness in nondurable goods.
The proxy for business spending non-defense capital goods ex. aircraft fell .6%, a 3rd decline in the last 4-months. Inventories were down 0.1% after 24 consecutive months with an increase.
The 4th quarter 2018 Senior Loan Officer Survey showed that banks continue to tighten commercial real estate lending standards.
Lending standards for residential mortgages, credit cards and commercial and industrial loans all eased during the period. Demand for credit cards fell for a 3rd consecutive quarter. Overall 15.9% of banks reported looser lending standards in the 4th quarter.
Standard and Poors 500 Index closed at: 2,724.87 up 18.38
NASDAQ finished the day: 7,347.54 up 81.26
Gold ended trading at: $1,319.30 down $3.30