Dow lost 4, advancers over decliners 3-2 & NAZ rose 1. The MLP index index was little changed in the 226s & the REIT index was steady in the 399s. Junk bond funds inched higher & Treasuries were modestly higher. Oil dropped 1+ after its recent rally & gold slid back 2 to 1571 (still at elevated prices).
AMJ (Alerian MLP Index tracking fund)
Boeing (BA), a Dow stock, stock dropped after a 737-800 jetliner operated by Ukraine Intl Airlines fell to earth shortly after takeoff in Iran, heightening scrutiny of the planemaker whose newer, more fuel-efficient 737 Max was grounded last year in the wake of 2 crashes that killed everyone on board. The Federal Aviation Administration halted commercial flights with the aircraft, which had become the best-selling model in BA's history, shortly afterward & investigators linked the crash & an earlier one in Indonesia to new anti-stall software. The planemaker's inability so far to win regulatory approval for a software patch that would return the Max to the skies has forced US airlines to trim flight schedules for months & prompted the departure of CEO Dennis Muilenberg, who had already lost the title of chairman. The crash of Ukraine International Airlines came hours after Iran launched a ballistic missile attack on Iraqi bases housing US soldiers, but both Ukrainian & Iranian officials said they suspected a mechanical issue brought down the 3-year-old Boeing 737-800 aircraft. "This is a tragic event and our heartfelt thoughts are with the crew, passengers, and their families," BA said. "We are in contact with our airline customer and stand by them in this difficult time. We are ready to assist in any way needed." The stock sank 6+ to the 331s.
If you would like to learn more about BA, click on this link:
club.ino.com/trend/analysis/stock/BA?a_aid=CD3289&a_bid=6ae5b6f7
Private employers added 202K jobs in Dec, soaring past expectations & ending the year on a strong note, according to the latest ADP National Employment Report. The total far exceeded the 160K jobs that was expected. The report also included an upward revision in Nov's numbers. The ADP Research Institute said the private sector added 124K jobs two months ago, up from the 67K initially reported. “Looking through the monthly vagaries of the data, job gains continue to moderate," Mark Zandi, chief economist of Moody’s Analytics, said. "Manufacturers, energy producers and small companies have been shedding jobs. Unemployment is low, but will begin to rise if job growth slows much further." Growth was spread across various sectors: Goods-producing industries accounted for 29K, while construction added 37K, the best monthly gain since Apr. Still, manufacturing posted a 7K decline, & natural resources & mining dropped by 1K. Services added 173K positions, with trade, transportation & utilities compensating for 78K. Substantial growth also took place in the professional & business services, which added 61K. Leisure & hospital lost 21K jobs & information fell by 14K. Medium-size businesses, which employ 50-499 people, accounted for almost ½ of the jobs, with 88K created & those with 1-49 workers, generated 69K jobs. Large businesses added 45K positions. The data precedes the release of a more closely watched update from the Labor Dept on Fri, which is expected to show the US economy added 164K jobs in Dec. Analysts anticipate unemployment will hold steady at 3.5%, a ½-century low. In Nov when the US added a surprisingly strong 266K jobs.
The housing market is off to a rocky start in 2020, with the number of available homes for sale on the decline & prices rising. Inventory in Dec declined 12% year over year – or by 155K listings, according to new data from Realtor.com. That's the largest year over year decline in almost 3 years. The number of homes for sale hit the lowest level since Jan 2018. The housing crunch currently looks more severe than the last shortage in 2017 & “shows no signs of abatement.” Exacerbating the problem? Volume of newly listed properties in Dec decreased by 11.2% since last year. As a result, the median listing price rose 3% year over year, to $299K. Listed properties were also sitting on the market fewer days than normal, selling after 79 days, which is 2 days quicker than the same period last year. For first-time buyers, the outlook might be even worse. Inventory of properties priced under $200K was down 18.1% in Dec, while the number of available homes for sale priced between $200-750K declined 10.2%. The metro areas with the steepest declines in inventory were San Jose, California (down 33%), Seattle (down 31.8%) & San Francisco (down 30.4%). As previously reported, low inventory was expected to remain a challenge throughout 2020. According to a previous forecast from Realtor.com, the total number available homes for sale could potentially hit a record low – particularly in the first-time buyer's market. Accordingly, overall US sales were expected to fall by 1.8%. Demand in the entry-level market will be driven by an uptick in Millennial activity, as those born between 1981 & 1997 are expected to account for more than 50% of all mortgages by springtime. And the shortage of inventory will be aggravated by the behavior of Baby Boomers, who are expected to remain reluctant to sell in the coming year. On the plus side, affordability is likely to remain a positive for prospective buyers. Mortgage rates are expected to remain low, while prices are not expected to rise significantly.
Stocks are digesting the news from the Middle East with a sense of calm. Trump will be speaking shortly & give more information on that situation. For the past 2 weeks the Dow has been trading water (see below). Considering its rally last year, that is understandable & not a bad performance. Meanwhile gold is near multi year highs.
Dow Jones Industrials
AMJ (Alerian MLP Index tracking fund)
| CL=F | Crude Oil | 62.16 | -0.54 | -0.9% |
| GC=F | Gold | 1,573.00 | -1.30 | -0.1% |
Boeing (BA), a Dow stock, stock dropped after a 737-800 jetliner operated by Ukraine Intl Airlines fell to earth shortly after takeoff in Iran, heightening scrutiny of the planemaker whose newer, more fuel-efficient 737 Max was grounded last year in the wake of 2 crashes that killed everyone on board. The Federal Aviation Administration halted commercial flights with the aircraft, which had become the best-selling model in BA's history, shortly afterward & investigators linked the crash & an earlier one in Indonesia to new anti-stall software. The planemaker's inability so far to win regulatory approval for a software patch that would return the Max to the skies has forced US airlines to trim flight schedules for months & prompted the departure of CEO Dennis Muilenberg, who had already lost the title of chairman. The crash of Ukraine International Airlines came hours after Iran launched a ballistic missile attack on Iraqi bases housing US soldiers, but both Ukrainian & Iranian officials said they suspected a mechanical issue brought down the 3-year-old Boeing 737-800 aircraft. "This is a tragic event and our heartfelt thoughts are with the crew, passengers, and their families," BA said. "We are in contact with our airline customer and stand by them in this difficult time. We are ready to assist in any way needed." The stock sank 6+ to the 331s.
If you would like to learn more about BA, click on this link:
club.ino.com/trend/analysis/stock/BA?a_aid=CD3289&a_bid=6ae5b6f7
Boeing stock tumbles after Iran crash involving 737
Private employers added 202K jobs in Dec, soaring past expectations & ending the year on a strong note, according to the latest ADP National Employment Report. The total far exceeded the 160K jobs that was expected. The report also included an upward revision in Nov's numbers. The ADP Research Institute said the private sector added 124K jobs two months ago, up from the 67K initially reported. “Looking through the monthly vagaries of the data, job gains continue to moderate," Mark Zandi, chief economist of Moody’s Analytics, said. "Manufacturers, energy producers and small companies have been shedding jobs. Unemployment is low, but will begin to rise if job growth slows much further." Growth was spread across various sectors: Goods-producing industries accounted for 29K, while construction added 37K, the best monthly gain since Apr. Still, manufacturing posted a 7K decline, & natural resources & mining dropped by 1K. Services added 173K positions, with trade, transportation & utilities compensating for 78K. Substantial growth also took place in the professional & business services, which added 61K. Leisure & hospital lost 21K jobs & information fell by 14K. Medium-size businesses, which employ 50-499 people, accounted for almost ½ of the jobs, with 88K created & those with 1-49 workers, generated 69K jobs. Large businesses added 45K positions. The data precedes the release of a more closely watched update from the Labor Dept on Fri, which is expected to show the US economy added 164K jobs in Dec. Analysts anticipate unemployment will hold steady at 3.5%, a ½-century low. In Nov when the US added a surprisingly strong 266K jobs.
Private sector job growth surges in December, ends decade on strong note
The housing market is off to a rocky start in 2020, with the number of available homes for sale on the decline & prices rising. Inventory in Dec declined 12% year over year – or by 155K listings, according to new data from Realtor.com. That's the largest year over year decline in almost 3 years. The number of homes for sale hit the lowest level since Jan 2018. The housing crunch currently looks more severe than the last shortage in 2017 & “shows no signs of abatement.” Exacerbating the problem? Volume of newly listed properties in Dec decreased by 11.2% since last year. As a result, the median listing price rose 3% year over year, to $299K. Listed properties were also sitting on the market fewer days than normal, selling after 79 days, which is 2 days quicker than the same period last year. For first-time buyers, the outlook might be even worse. Inventory of properties priced under $200K was down 18.1% in Dec, while the number of available homes for sale priced between $200-750K declined 10.2%. The metro areas with the steepest declines in inventory were San Jose, California (down 33%), Seattle (down 31.8%) & San Francisco (down 30.4%). As previously reported, low inventory was expected to remain a challenge throughout 2020. According to a previous forecast from Realtor.com, the total number available homes for sale could potentially hit a record low – particularly in the first-time buyer's market. Accordingly, overall US sales were expected to fall by 1.8%. Demand in the entry-level market will be driven by an uptick in Millennial activity, as those born between 1981 & 1997 are expected to account for more than 50% of all mortgages by springtime. And the shortage of inventory will be aggravated by the behavior of Baby Boomers, who are expected to remain reluctant to sell in the coming year. On the plus side, affordability is likely to remain a positive for prospective buyers. Mortgage rates are expected to remain low, while prices are not expected to rise significantly.
US housing inventory hits multi-year low amid severe crunch
Stocks are digesting the news from the Middle East with a sense of calm. Trump will be speaking shortly & give more information on that situation. For the past 2 weeks the Dow has been trading water (see below). Considering its rally last year, that is understandable & not a bad performance. Meanwhile gold is near multi year highs.
Dow Jones Industrials
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