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.

S&P 500 Index		-0.94%
Communication Services (XLC)		-1.08%
Consumer Discretionary (XLY)		-1.24%
Consumer Staples (XLP)	+0.30%
Energy (XLE)		-1.35%
Financials (XLF)		-1.05%
Health Care (XLV)		-0.15%
Industrials (XLI)		-0.37%
Materials (XLB)		-0.30%
Real Estate (XLRE)	+0.41%
Technology (XLK)		-1.97%
Utilities (XLU)	+0.18%

 

Comments

I started getting hotline alerts (wed 2/12, thurs 2/13 and fri 2/14) which was terrific and then no more. I really like getting the alerts via email, would please see that I do. Thank you Charles (Pete) Welch on 2/23/2020 11:41:30 AM

Pete will try to get it squared away before the open Charles Payne on 2/23/2020 11:49:44 AM

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