This was a tough week for the markets with both the Dow and the S+P losing about 12%. The 10 year Treasury rose in price and the yield dropped to 1.127%. The cause of the big move was the panic over the Coronavirus. Hopefully this is all blown out of proportion, unfortunately we won’t know until more data comes out.
Economically, the news was almost all good with pending home sales way up for January, durable goods orders and capital goods orders all coming in much better than expected. Inflation came in lower than expected, which is also a good thing.
Hopefully the weekend will give the markets a bit of a breather and allow people to calm down. The big market movers next week will likely not be economic news but rather what happens with the coronavirus and how governments react.
~ Alex
