The market is grappling with a report on the service economy that was shockingly below consensus and with some concerns about the coronavirus outside of China.

The IHS Markit report on service, which saw a decline to 49.4% from 53.4%, was surprising, but it’s not the official government data. 

Stock of the Day

Deere (DE)

• Posted revenue of $6.53 billion against consensus of $6.41 billion
• Earnings per share $1.63 consensus was $1.25
• Operating Margin 5.9% from 4.9%

Note: US farm cash receipts expected to rebound higher.

The stock has been ranged bound since Jan 2018, although, the stock has made a series of highs and lows since 2009.

Existing home sales

Existing home sales came in at 5,460,000 annual rate against Wall Street consensus of 5,430,000.

Y/Y Highlights

• First Time buyers 32% from 29%
• $266,300 from $274,500
• 1.42 million inventory from 1.59 million (lowest since 1999)

       Sales based on price

• Under $100,000 -4.1%
• Under $250,000 +8.2%
• Under $500,000 +20.6%
• Under $750,000 +22.9%
• Under $1,000,000 +20.5%
• Over $1,000,000 +15.4%

The safe haven Consumer Staples, Real Estate and Utilities are in the green, with Technology get the hardest hit.