The Market Bull – February 5, 2020
The major averages close with large gains on positive economic data. Trump’s impeachment trial ends in acquittal after the close. Coronavirus news goes dark.
The Mortgage Bankers Association reports that mortgage activity increased 5% last week as refis surged 15.3% and purchase apps dropped 9.5%. The 30-year contract rate for a jumbo loan slipped to 3.7%.
The Institute for Supply Management non-manufacturing or services index advanced .5 point to 55.5 slightly ahead of expectations. Improvements were fairly broad based; price data slipped a little. The Coronavirus is likely to negatively impact the manufacturing sector noticeably in the coming months, as is the 737-production line shutdown to an as yet unknown extent. That said the Coronavirus is starting to look a lot less threatening than it originally appeared.
The international trade in goods deficit came in higher than expected in December at 48.9 billion. Exports increased .72% to 209.6 billion. Imports increased 2.66% to 258.5 billion. On net exports should add to 4th quarter Gross Domestic Product or GDP, but the effect is likely to prove transitory. For all of 2019, the trade deficit narrowed by $10.9 billion, or 1.7%, much of this due to improved trade balances with China. This figure will be revised later this year.
Standard and Poors 500 Index closed at: 3,334.69 up 37.10
NASDAQ finished the day: 9,508.68 up 40.71
Gold ended trading at: $1,560.30 up $4.80