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Afternoon Note

Resting

By Charles Payne, CEO & Principal Analyst
1/22/2020 1:34 PM

The major indices are well off their highs, and the Dow has slipped into negative territory.  Technology continues to be the best performing S&P sector despite Netflix’s (NFLX) decline after reporting earnings.  Boeing (BA) is down again today.  United Airlines (UAL), which reported better than expected earnings, announced it does not intend to begin flying the 737 MAX this summer.  This is not surprising considering BA delayed its time to certify the plane to June/July. 

S&P 500 Index

+0.22%

 

Communication Services (XLC)

+0.15%

 

Consumer Discretionary (XLY)

+0.32%

 

Consumer Staples (XLP)

+0.12%

 

Energy (XLE)

 

-1.03%

Financials (XLF)

+0.26%

 

Health Care (XLV)

+0.04%%

 

Industrials (XLI)

 

-0.53%

Materials (XLB)

 

-0.33%

Real Estate (XLRE)

 

-0.50%

Technology (XLK)

+0.59%

 

Utilities (XLU)

+0.39%

 

Decliners are outpacing advancers on both the NYSE and the Nasdaq, however, there are still more new highs than lows.

Issues:

NYSE

NASDAQ

Advancing

1,515

1,636

Declining

1,366

1,484

52 Week High

280

242

52 Week Low

28

26

 

In economic news, existing home sales in December were up 3.6% to 5.54 million units from the prior month, topping November’s 5.35 million units. Year over year, existing sales were up 10.8%. Supply of existing homes remains extremely constrained at 3 months’ supply, down from November’s 3.7 months and is driving prices up even more. This is the lowest level of inventory on record.  A normal market is 6 month’s supply.  The median single-family home price increased 8.0% year over year. 

Perhaps the tight supply and high cost led to a decline in overall mortgage applications, which dropped 1.2% last week. Refinance as well as purchases both fell 2%, however, from the prior year are up 116% and 8%, respectively.


Comments
I really enjoy your daily comments and analysis of the markets, not to mention your appearance on FOX. Keep up the good work Charles.

James Shipley on 1/22/2020 2:01:00 PM
helpful. thanks for the detail summary.

steve RUTHERFORD on 1/22/2020 2:26:05 PM
 

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