Will US Home Sales Continue to Surge Higher? | Before & After | Refinitiv

TL;DR

US housing market shows strong growth in 2019, with low mortgage rates and a tight job market fueling demand. Manufacturing sector remains a concern for the economy. Netflix beats earnings estimates but misses subscriber growth targets.

Transcript

this is before and after from r affinity I'm your host Johanna bata 2020 could be the year that the corporate fairytale that has carried the US economy hands over the baton to that old pillar housing 2019 ended with clear momentum in US housing figures and the last report which detailed November's numbers indicated a double-digit year of a year gro... Read More

Key Insights

• 😘 US housing market showed strong growth in 2019, driven by low mortgage rates and a tight job market.
• 🤘 Housing sector accounts for a significant portion of the US economy, making it crucial to monitor for any signs of instability.
• ❓ Honeywell's stock price reflects the market's expectations for US manufacturing growth.
• 🪡 Manufacturing sector remains a concern for the US economy, with improvements needed for a sustained bullish outlook.

Questions & Answers

Q: What factors contributed to the strong growth in the US housing market in 2019?

The US housing market experienced double-digit year-on-year growth in 2019 due to low mortgage rates and a tight job market. These factors energized house hunters and enabled more individuals to qualify for a mortgage.

Q: What impact does the housing sector have on the US economy?

The housing sector accounts for 4% of the GDP, with an additional 12.5% in housing and utility services. As such, any fluctuations or instability in the housing market can have a significant impact on the overall economy.

Q: What is the outlook for new home sales in the US?

Expectations are high for 728,000 new home sales in December, which would be a lofty number compared to the past decade. A strong number is expected to boost Leonard, a major player in the home builder ETF, indicating market leadership for the first quarter of 2020.

Q: What is the current state of manufacturing in the US?

Manufacturing represents the missing piece for a bullish economic outlook in the US. The PMI reading is expected to be above the 50 level, indicating continued growth. Honeywell, a leading manufacturing company, is trading at all-time highs but needs to show growth to justify its stock price.

Q: How did Netflix perform in its recent earnings report?

Netflix beat earnings estimates, with an EPS of 1.30 compared to the expected 0.53. However, the company fell short on subscriber growth, adding only 420,000 US subscribers instead of the expected 659,000. Netflix revised down its first-quarter subscriber forecast, raising concerns about increasing competition.

Summary & Key Takeaways

• US housing market ended 2019 with double-digit year-on-year growth, driven by low mortgage rates and a strong job market.

• Manufacturing sector needs improvement in 2020 to support bullish economic outlook.

• Honeywell, a bellwether for US manufacturing, is trading at all-time highs but needs to show growth to sustain it.

• Netflix beats earnings estimates but falls short on subscriber growth, raising concerns about increasing competition.