The Market Bull – February 20, 2020
Black Knight’s latest mortgage delinquency report shows that delinquencies fell to a record low of 3.22% in January. With an additional .46% in foreclosure the distressed property rate totals just 3.68% to begin the year. A nearly 15-year low as rising property prices, near record low interest rates and a strong labor market all helped to produce the record low figures.
The California Association of Realtors reports that sales rose 10.3% on a year ago basis in January as inventory for sale fell 26.9% over the same period. While good news, sales fell .7% from December to 395,581 a second consecutive month of sales below 400,000 units. So, despite a crushing lack of inventory and some significant affordability issues real estate kicks off 2020 strong in the Golden State.
Despite all sorts of dire predictions about the 737 Max production line shutdown beginning in January so far manufacturing has held up surprisingly well. The latest example being a 19.7-point surge in the Philadelphia Fed regional index as it shattered expectations with 36.7 point top line print in February. Strength was seen in new orders, they nearly doubled. Price and employment data were mixed. While supply chain disruption from the Coronavirus remains an as yet unknown issue and many details related to the trade war settlement with China still outstanding, manufacturing at least has some breathing room for now.
Standard and Poors 500 Index closed at: 3,373.15 down 13.00
NASDAQ finished the day: 9,750.96 down 66.21
Gold ended trading at: $1,622.70 up $10.90