This was a tough week for the markets, with both the S+P and the Dow losing over 2%. The ten year Treasury Bond yield fell to 1.52%, a drop of over 15 basis points for the week. The major news of the week was the potential lost economic output from the Coronavirus as many manufacturers and importers are having difficulty getting Chinese manufactured items. On a side note, Brexit happened, and no one really noticed. The Fed meeting did not significantly impact the market and there was no major policy change.
Economically, There were a few good surprises this week, with durable goods orders for December beating estimates handily. Pending home sales really disappointed, while Q4 GDP was higher than expected. Manufacturing in the Midwest slumped, which contributed to the Friday decline. This was likely due at least in part to Boeing. Earnings were mixed, with a couple bright spots such as Amazon.
Next week we start to see how the January economy went with January unemployment data coming out as well as some manufacturing data. Earnings season continues with several hundred companies expected to report next week.
~ Alex Parrs
