Morning Commentary
Mankind has dealt with its share of viral outbreaks that have wreaked havoc and decimated populations. Now, the world braces for more information on the Wuhan coronavirus. Meanwhile, the word “quarantine” is back in the lexicon, which in and of itself brings a certain amount of fear.
The word quarantine was in fact coined in Venice, where arriving ships were isolated away from shore for forty days (quarantine) in the aftermath of the Black Death plague that killed 48,000 Venetians or 33% of the population at the time. Today, Festa del Redentore (Feast of the Redeemer) is held every July in Venice to celebrate the city escaping the grip of the epidemic.
So, the market continues to mark time waiting for more impactful earnings and spying the situation in China, where an entire city of 11,000,000 people is under quarantine. Today, the World Health Organization (WHO) will determine the threat level of the Wuhan coronavirus.
I must say; however, the market is taking it all in stride just as investors seem oblivious to the impeachment hearings in Washington, D.C. It’s true in the end both should prove to be answers to trivia questions, and yet commentators have worked so hard to spark panic and have found no takers. On the contrary, I get the sense would-be buyers are hoping for some pullback when these dual issues are resolved, and they can aggressively reenter the market.
Or, should I say, ‘feast’ on yet another dip?
The Message of Market
On Wednesday, the S&P 500 and the NASDAQ finished the session higher, while the Dow held on for dear life before slipping 9 points into the red, right at the closing bell.
It’s not a big deal, especially considering the continued carnage at Boeing (BA). The good news at the beleaguered aircraft maker came late in the session when management said they would keep the dividend in place, even as rumors swirl about a need to raise $10.0 billion.
The Market Breadth was mixed, but winners continue to win big time; 52-week new highs:
There wasn’t a lot of panic during the session, as some buyers ducked into Utilities and others kicked the tires elsewhere.
S&P 500 Index |
+0.03% |
|
Communication Services (XLC) |
-0.05% |
|
Consumer Discretionary (XLY) |
-0.05% |
|
Consumer Staples (XLP) |
+0.08% |
|
Energy (XLE) |
-0.96% |
|
Financials (XLF) |
+0.29% |
|
Health Care (XLV) |
+0.12% |
|
Industrials (XLI) |
-0.53% |
|
Materials (XLB) |
-0.40% |
|
Real Estate (XLRE) |
-0.80% |
|
Technology (XLK) |
+0.36% |
|
Utilities (XLU) |
+0.31% |
Housing Boom
The housing boom I called only gets stronger. Existing home sales for December blew the consensus away, climbing 3.6% from November and 10.8% from December 2018. Interest rates last week were 3.65%, down from 4.45% a year ago. Median home prices edged up to $274,000 as the supply plunged. Homes under $100,000 swooned 14.3% while the overall month’s supply tumbled to 3.0%, the lowest in the history of data series.
All the homebuilders closed at record highs.
Portfolio Approach
Yesterday, we took profits in one Financial and one Real Estate position. We are lowering Financials to a 1 weight and raising Cash to 5% (weight). If you are not currently a subscriber to our Hotline service, contact your account representative or email us at research@wstreet.com.
Communication Services |
Consumer Discretionary |
Consumer Staples |
1 |
4 |
2 |
Energy |
Financials |
Healthcare |
1 |
1 |
2 |
Industrial |
Materials |
Real Estate |
3 |
1 |
1 |
Technology |
Utilities |
Cash |
3 |
0 |
1 |
Today’s Session
Big names have posted results, which are mostly in line, but nothing super. The result has been that the market has been drifting all morning.
Earnings
PG (lower)
• Missed revenue
• Beat earnings
• Guidance higher
TRV (lower)
• Beat revenue
• Beat earnings
CMCSA (higher)
• Beat revenue
• Beat earnings
KMB (unchanged)
• Missed revenue
• Beat earnings
• Guidance mixed
TER (up big)
• Beat revenue
• Beat earnings
STM (higher)
• Beat revenue
• Beat earnings
Central Banks
Comments |
Hi Charles, This is cousin Vinny. How's it going? Spare a dime? Lol Berniece Redmond on 1/23/2020 10:53:50 AM |
LMAO what is it this time? Charles Payne on 1/23/2020 11:22:17 AM |
Bloomberg's net worth in 2016 was approx. 36 billion, now it's 54 billion. Why would he want to change anything with the way Trump is running the country. It would cost him BILLIONS if he or any Democrat become president. Bob on 1/23/2020 12:05:43 PM |
what do you think has driven that bump in fortune? The China market could be bigger than America and Bloomberg sees no evil when it comes to China. Charles Payne on 1/23/2020 12:34:12 PM |
what do you think has driven that bump in fortune? The China market could be bigger than America and Bloomberg sees no evil when it comes to China. Charles Payne on 1/23/2020 12:34:32 PM |
If he is invested heavily in China, would that be a conflict of interest to become president of the US? Bob on 1/25/2020 9:38:31 AM |
Tweet |
3/28/2024 7:50 AM | LISTEN TO THE MARKET |
3/27/2024 1:40 PM | Mostly Higher |
3/27/2024 9:32 AM | U-TURN? |
3/26/2024 1:08 PM | Everything Is Up |
3/26/2024 9:42 AM | TAPPED OUT (I HOPE YOU AT LEAST GOT A T-SHIRT) |
3/25/2024 1:33 PM | Not A Mutiny |
3/25/2024 9:35 AM | STAYING THE COURSE…BEYOND TECH |
3/22/2024 12:56 PM | Toll on Americans |
3/22/2024 9:38 AM | A TAD TIRED |
3/21/2024 1:55 PM | Building on Gains |
3/21/2024 9:30 AM | A COMFORTING FED |
3/20/2024 1:33 PM | Pivotal Moment |
3/20/2024 10:00 AM | HERE COMES THE FED |
3/19/2024 1:33 PM | Picking Up Steam |
3/19/2024 9:35 AM | RUMBLINGS IN THE BOND MARKET |
3/18/2024 1:48 PM | Mag 7 is Back |
3/18/2024 9:39 AM | THE PARTY IN SAN JOSE WILL BE LIT |
3/15/2024 1:38 PM | Realtors Settle |
3/15/2024 9:33 AM | AN UNEASY PAUSE |
3/14/2024 1:43 PM | Sticky Inflation |
3/14/2024 9:48 AM | GOING TO A GO-GO |
3/13/2024 2:16 PM | Taking a Breather |
3/13/2024 9:51 AM | ALL SO EPIC |
3/12/2024 1:42 PM | Marching Higher |
3/12/2024 9:25 AM | ROTATION IN FULL SWING |
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