“Apple, Boeing, GE, DOW, McDonald’s Lead But Fed & Coronavirus Counter” – Vista Partners Daily Market Recap For January 29, 2020

A number of earnings beats from Dow 30 components (Apple, Boeing, Dow, & McDonald’s) and a former Dow 30 component GE led the initial charge up today, but the good old Fed kept interest rates the same & repo’s going through April and stories of the coronavirus having infected greater numbers overpowered the positives and brought the markets back down to earth at the end of the day. The Nasdaq Composite ended at 9,275.16, +.06%. The S&P 500 ended at 3,273.40, -.09%. The Dow Jones Industrial Average ended at 28,734.45, +.04%. The Russell 2000 moved lower by -.55% ending at 1,649.22.

The FAANG stocks were in the green except for Netflix. Facebook (FB) closed at $223.23/share, +2.50%, Amazon (AMZN) closed at $1858/share, +.26%, Apple (AAPL) closed at $324.34/share, +2.09% after beating Wall Streets earnings expectaions, Netflix (NFLX) closed at $343.16/share, -1.54% & Alphabet (GOOG) closed at $1458.63/share, +.42%.

The “fear gauge” Vix (TVIX) ended at $47.80/share pulling back slightly -.42% and traded in a range of $45.38 – $49.50.

Economic Reports

On Monday we received the New home sales report which confirmed a drop by -.4% month/month in December to a seasonally adjusted annual rate of 694k units.

On Tuesday, we received the Conference Board’s Consumer Confidence Index report which increased to 131.6 in January.
Total durable goods orders report increased +2.4% month/month in December. When excluding transportation, durable goods orders dropped -.1%. The S&P Case-Shiller Home Price Index moved up +2.6% year/year in November.

On Wednesday, we received the Pending Home Sales report which dropped -4.9% in December. The Advance report for International Trade in Goods for December confirmed a deficit of $68.3B vs. $63.2B in November. The Advance report for Retail Inventories for December was flat while the Advance report for Wholesale Inventories for December dropped -.1%. The weekly MBA Mortgage Applications Index Report jumped +7.2%.

Investing & Inspiration

“Let this scenario play out on its own, in its own fashion. As you watch it unfold, you will soon be grateful that you choose the peaceful path. Remember — those who live by the sword, die by the sword.”

“As long as you enjoy investing, you’ll be willing to do the homework and stay in the game.” -Jim Cramer

“I rarely think the market is right. I believe non-dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for it.” -Mark Cuban

“Michael Marcus taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.” -Bruce Kovner

“The policy of being too cautious is the greatest risk of all.” -Jawaharlal Nehru

“The only true test of whether a stock is “cheap” or “high” is not its current price in relation to some former price, no matter how accustomed we may have become to that former price, but whether the company’s fundamentals are significantly more or less favorable than the current financial-community appraisal of that stock.” -Philip Fisher

“I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.” -Richard Dennis

“The four most dangerous words in investing are: ‘this time it’s different.” -Sir John Templeton

“Money doesn’t make you happy. I now have $50 million but I was just as happy when I had $48 million.” -Arnold Schwarzenegger

Tomorrow

Tomorrow’s significant economic data report schedule will include the following:

• The advance estimate for Q4 GDP &
• The weekly Initial and Continuing Claims report