Market Perspective for September 27, 2019

The Dow Jones Industrial Average slipped 0.38 percent this week, the S&P 500 Index 0.96 percent, the Nasdaq 2.13 percent and the Russell 2000 Index 2.49 percent.

SPDR Utilities (XLU) increased 1.35 percent and SPDR Consumer Staples (XLP) gained 1.28 percent. SPDR Real Estate (XLRE) saw a smaller advance of 0.38 percent.

Economic data showed the U.S. economy strengthening. The flash manufacturing and services PMI for September came in above August readings and economist estimates.

The Case-Schiller home price index showed home prices increased 3.2 percent year-over-year in July. New home sales crushed forecasts and hit an annualized pace of 713,000. Housing is one of the best indicators of core economic strength.

Initial claims for unemployment were 213,000, consistent with readings over the past several weeks. Durable goods orders increased 0.2 percent, well ahead of a consensus forecast of negative 0.7 percent. The University of Michigan’s consumer sentiment survey ticked up to 93.2, beating expectations.

iShares MSCI EAFE (EFA) slipped 0.85 percent on the week. iShares MSCI Emerging Markets (EEM) declined 2.24 percent, with most of the loss coming on Friday.

Micron Technology (MU) beat earnings estimates by 14 percent, but weaker guidance sent shares lower. Nike (NKE) also beat earnings forecasts and its shares increased 6.5 percent on the week. Rite Aid (RAD) and KB Home (KBH) also beat earnings this week.

 

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