Officially in a correction
The S&P 500 is officially in a correction, as it has pulled back 10% for the first time since early 2016. Since 1950, on average there have been about three 5% pullbacks a year, one 10% correction a year, and one 20% bear market decline every seven years. Also, this is the first time in history the S&P 500 went from a new high to a correction in 9 days or less. (LPL)
Volatility continues. Global equity markets fell again last week. Over the past 5 days the S&P 500 has lost 8.5%, marking the worst 5-day stretch since August 2015. To put things in perspective, the S&P 500 pulled back 2.8% (peak to trough) all of last year–the second smallest intra-year pullback ever. Two separate days last week saw larger pullbacks. (LPL)
The Commerce Department says wholesale inventories in December increased 0.4% to a value of $612.1 billion. At current levels, it would take wholesalers 1.22 months to clear their shelves.
Ford is increasing production of the Ford Expedition and Lincoln Navigator by 25%. It says it can sell every single vehicle it produces in the company’s Louisville truck plant. (CNBC)
The S&P 500 is up 31 and the NASDAQ is up 75. The MSCI international index is higher.
Oil is up %1.05 at $60.28 a barrel.
Gold is up $5 at $1321 a Troy ounce.
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.