This was a bit of a disappointing week for the markets with both the Dow Jones and the S+P losing over one percent. The 10 year Treasury bond fell to 1.47%, showing a rise in bond prices.
A decline in manufacturing caused by the coronavirus shutting down Chinese markets was the main cause of the decline.
Economically the numbers were a little weak this week, with the January PPI coming in much higher than expected, and housing starts and building permits both coming in lower than expected. Hopefully the PPI settles back out, and the spike was likely caused by troubles with Chinese imports.
Next week, we get some real estate numbers such as the Case Schiller home price index and personal income and consumer spending which should give us a good read on confidence and inflation, two things we are watching closely.
~ Alex
