Market Snapshot September 9, 2020
Good Wednesday AM this best day of the week.
Stocks are on fire today erasing all losses from yesterday. The Dow up 600. It never ceases to amaze me how in one day sentiment changes. Clearly yesterday selling made some think stocks were cheap enough to start buying again. With the gains in equities, both the ten-year and the mortgage bonds are pulling back. Mortgage Bonds bounced from the top of the current trading range and has now pulled back to the mid-point with some room to fall farther. The next two days of news are important. We will get the PPI (wholesale rate of inflation) and CPI, which is the number benchmark for the Fed to set policy. A low CPI number could spark a rally in bonds. Of course the opposite, which would indicate inflationary concerns, would be unfriendly for bonds.
We all know that inventory is our limited factor. Here is a great visual on what that looks like in Clark County Nevada… 1.7 months of total inventory (that includes properties that are overpriced and/or unsellable). RUT ROW!
Haven’t mentioned Covid in a while but came across this headline: AstraZeneca puts its Covid-19 vaccine trial on hold. The drug giant said the pause was a “routine reaction,” after a U.K. participant had an unexplained illness. U.S. virus cases have risen slightly after the Labor Day weekend. This was a joint research drug with Oxford University. The US invested 1.2 billion into its development.
And as an indication on how Covid is impacting real estate, the owner of the 478-room Hilton Times Square hotel (this is an icon in NYC) said the hotel was “permanently closing” last week. The closure is the latest sign of how the pandemic has upended the New York City’s hotel industry, as tourists stay home and business travel is virtually shut down.
Please remain safe and healthy. Make today great!