The Market Bull – September 19, 2019
Despite generally positive data the major averages couldn’t hold their early gains after comments about the trade war flaring up hit the wires once again.
Even though it beat expectations in September the Philadelphia Fed regional index fell 4.8-points to 12. Despite notable improvements to employment, additionally price data also advanced markedly.
Existing Home Sales handily beat expectations in August with a 1.3% advance to 5.49 million units annualized. All regions gained except the West, which fell 3.4%. Month’s supply slipped to 4.1, about normal. The median price dropped .8% to $278,200 a figure 4.7% higher than a year ago. Lower interest rates were listed as the primary cause of the recent sales improvement. That said the latest jump in mortgage rates, should it stick, will likely crimp sales going forward.
Dramatic swings in money market rates as the Fed struggles with its recent round of repurchase agreements or Repo’s as they are commonly known. Some pundits went on to refer to the issues as a nascent financial crisis, urging the Fed to get the situation under control ASAP. Others voiced the opinion that the Fed would resume asset purchases, aka QE or Quantitative Easing in November following in Europe’s footsteps. If everything is so grand as per the official narrative the European Central Bank and Federal Reserve sure aren’t acting like it, nor are the domestic money markets. Like 2007, everything was just fine and dandy, until one day it wasn’t when markets went from normal, to everyone’s hair is on fire, in a few short months.
Standard and Poors 500 Index closed at: 3,006.79 up .06
NASDAQ finished the day: 8,182.88 up 5.49
Gold ended trading at: $1,505.80 down $10.00