Stocks Have Worst Day Since October Over Coronavirus Worries

But as long as the spread of the virus remains contained, the economic implications should not be dire for the United States.

The American economy is relatively insulated from trade, and the important consumer sector continues to show signs of strength. Unemployment remains near 50-year lows, and economic growth, while relatively slow, is steady. Inflation and interest rates are low, with signs that those low rates are finally starting to filter through to the broader economy.

With rates on 30-year fixed mortgages below 4 percent, housing has recently picked up the pace. Sales of previously built homes are at their highest level since early 2018. Homebuilders are reporting strong demand for more affordable offerings.

On Monday, D.R. Horton — the largest American homebuilder by house closings — reported better-than-expected earnings and revenue for the first quarter, sending its shares up 2 percent. Lennar, the second-largest builder, reported similarly bright numbers this month.

“Across all of our geographies, we’re feeling pretty good about the traffic, pretty good about the demand in the most recent quarter,” Bill Wheat, chief financial officer of D.R. Horton, said on a conference call with analysts.

Article source: https://www.nytimes.com/2020/01/27/business/stock-market-today.html?emc=rss&partner=rss