The Market Bull – December 23, 2019
The major averages close with small gains on mixed data to begin the holiday shortened week. The trade war and impeachment remain on the back burner.
Fallout from Boeing’s 737 fiasco sent durable goods orders skidding in November with a 2% decline the inverse of the 1.9% gain expected. The proxy for business spending non-defense capital goods ex-aircraft managed a .1% advance. October was revised significantly lower from +.6% to just +.2%. While the 737 fiasco has had a so far limited impact on economic growth it is expected to shave .5% from 1st quarter Gross Domestic Product or GDP when Boeing shuts down the production line indefinitely in January.
The Chicago Fed National Activity Index jumped 1.27 points in November to +.56, gains were seen across the board. A volatile series one month means little. The 3-month moving average advanced .1 points to -.25, a 10th consecutive negative month. -.7 for the series is generally considered a recession. This data set covers about 85% of total economic activity and the sharp rebound further suggests that the recent bout of soft economic data was transitory.
New home sales missed expectations in November despite a 1.3% gain to 719,000 units. Month’s supply slipped fractionally to 5.4, a little high. The median price gained 1% to $321,900 for the month to reach a 3-month high. At the regional level results came in mixed, the west posted a second consecutive solid gain up 7.5%. September and October were revised down significantly by 31,000 sales.
Standard and Poors 500 Index closed at: 3,224.01 up 2.79
NASDAQ finished the day: 8,945.65 up 20.69
Gold ended trading at: $1,489.00 up $8.10