The Market Bull – February 12, 2019
With off again on again rumors of a settlement with China to resolve the trade war before 25% tariffs kick in. A last minute reprieve on a renewed government shutdown and border wall solution. Additionally the Senate Intelligence Committee has concluded that there was no collusion between Trump and the Russians, when it was unable to find evidence of such. The major averages surged in early trade, closing with large gains.
With the earnings reporting season turning into the home stretch it looks to be one of the weakest quarters in quite some time. Some 73% of Standard and Poors 500 companies having now reported earnings, so far, 60% have beaten on Earnings Per Share or EPS, 53% on Sales and 37% on both.
While this is not only below the long-term average, it is also the lowest at this point of the earnings season in four years.
The National Association of Realtors or NAR released its 4th quarter 2018 Metro Prices Report and found that on a year ago basis all showed price gains led by Las Vegas with an impressive 10.2% increase, at the other end of the spectrum New York advanced just 2%. For cities in the Golden state we have Los Angeles up 4.1%, and San Francisco with a 3.5% gain.
That said real estate prices clearly softened as 2018 came to a close and this report shows that 9 of the 10 metro regions covered showed price declines in the 4th quarter, the one exception being Las Vegas with a .2% advance. This is the first report I have seen that shows broad based price declines for real estate, I suspect it won’t be the last.
Standard and Poors 500 Index closed at: 2,744.73 up 34.93
NASDAQ finished the day: 7,414.62 up 106.71
Gold ended trading at: $1,314.20 up $2.30