Housing Starts, Building Permits, Industrial Production Numbers Propel Markets Forward For 5th Consecutive Day!

The broad markets on Tuesday moved up to new highs for a 5th consecutive day on the back of solid economic reports. Today we received the total housing starts report which showed mover higher by +3.2% month/month to a seasonally adjusted annual rate of 1.365M. Total building permits came in with +1.4% month/month move higher to a seasonally adjusted annual rate of 1.482M. Industrial production also showed a rise of +1.1% in November. The capacity utilization rate also moved higher to 77.3%. The October Job Openings and Labor Turnover Survey confirmed that job openings rose to 7.267M. The US-China trade war saga (Phase One) is still understood to be signed in January and moving forward.

As a result, the S&P 500, Dow & Nasdaq Composite edged higher. The S&P 500 ended the day up +.03%. The Nasdaq Composite gained +.10% as Apple (AAPL) notched higher +.2% ending at $280.41/share after hitting a new record high of $281.77 and now enjoys a $1.7 trillion market cap. The Dow Jones Industrial Average ended up +.11% as Dow 30 component Boeing (BA) closed flat at $327 after yesterday’s selloff when news of the halt of the 737 MAX production will start in January began to surface and then were confirmed today. The Russell 2000 moved higher +.46% at the close of trading. The “fear gauge” Vix (TVIX) ended a little lower again at $51.16/share at the close of trading down -1.88% slowing its recent slide.

Economic Reports

On Monday we received the NAHB Housing Market Index for December rose to 76 jumping from 69 in November & the Empire State Manufacturing Survey for December also rose to 3.5.

On Tuesday, we received the total housing starts report which showed mover higher by +3.2% month/month to a seasonally adjusted annual rate of 1.365M. Total building permits came in with +1.4% month/month move higher to a seasonally adjusted annual rate of 1.482M. Industrial production also showed a rise of +1.1% in November. The capacity utilization rate also moved higher to 77.3%. The October Job Openings and Labor Turnover Survey confirmed that job openings rose to 7.267M.

Investing & Inspiration

“One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.”
-William Feather

Tomorrow

I added Travena, Inc. (TRVN) in the $.75/share range this week and are looking for the continued turn up of shares beginning Monday. The 52-week range is $.38-$2.  On December 12, Trevena, a biopharmaceutical company focused on the development and commercialization of novel medicines for patients with central nervous system (CNS) disorders,  announced a poster presentation at the 58th Annual Meeting of the American College of Neuropsychopharmacology (ACNP), in Orlando, FL. The poster presentation featured results from a Phase 1 first-in-human study that evaluated the safety, tolerability, and pharmacokinetics (PK) of TRV250, the Company’s novel G protein-selective delta-receptor agonist being developed for the acute treatment of migraine. TRV250 was well-tolerated up to 30 mg, with a PK profile appropriate for an acute migraine therapy. There were no serious adverse events and no clinically significant changes in EEG, ECG, or other safety parameters. Mark A. Demitrack, M.D., Senior Vice President and Chief Medical Officer of Trevena, Inc. Mark A. Demitrack, M.D., Senior Vice President and Chief Medical Officer of Trevena, Inc. stated, “We are excited to be pursuing TRV250 as a potential new therapeutic option for migraine sufferers, many of whom struggle to achieve relief with currently available options. The positive data from this Phase 1 study informed our recently initiated proof-of-concept study, with topline data anticipated in the second half of next year.”