COMPANIES ARE STILL MAKING MONEY!… The gloomy recessionistas got foiled again, as the first big week of corporate earnings season showed companies made more money in Q3 than expected, and stocks dutifully shot up.
The Dow was off a tick, but that was after two of its 30 components had bad news hammer their prices, dragging down the whole party. China saw its slowest economic growth in over 27 years, which could speed a U.S. trade deal.
Retail Sales were off in September, but up a solid 4.1% the past year. Excluding volatile autos, building materials, and gas, retail sales are up an annualized 8.6% rate since the start of 2019, the fastest year-to-date growth since 1992!
The week ended with the Dow down 0.2%, to 26,770; the S&P 500 UP 0.5%, to 2,986; and the Nasdaq UP 0.4%, to 8090.
Bonds overall edged up, though some went south, others sideways. The 30YR FNMA 4.0% bond ended unchanged, at $103.64. In Freddie Mac’s Primary Mortgage Market Survey, the national average 30-year fixed mortgage went up, yet remains more than 1% lower than a year ago. Remember, mortgage rates can be extremely volatile, so check with your mortgage professional for up-to-the-minute information.
DID YOU KNOW?… Thanks to today’s mortgage rates, Fannie Mae forecasts mortgage originations will top $2 trillion in 2019, making it the best year since 2016. If the trendline continues, originations could reach a 12-year high by year-end.