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 Post subject: March 5th Monday Price Action Trade Result - No Trades
PostPosted: Tue Mar 06, 2018 9:37 am 
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The Market at 04:20PM ET
Dow: +336.70… | Nasdaq: +72.84… | S&P: +29.69…
NASDAQ Vol: 2.04 bln… Adv: 2018… Dec: 920…
NYSE Vol: 893.9 mln… Adv: 2159… Dec: 770…

Moving the Market

Stocks bounce back from early weakness, rally for the second consecutive session

Fears over a trade war ease after House Speaker Paul Ryan (R-WI) opposes President Trump's plan to implement tariffs on steel and aluminum imports

Sector Watch
Strong: Financials, Materials, Utilities, Real Estate
Weak: Technology, Health Care

04:20PM ET

[BRIEFING.COM] Equities opened the week with a comfortable victory on Monday, reclaiming around half of last week's losses. The Dow Jones Industrial Average led the rally, jumping 1.4%, while the S&P 500 and the Nasdaq Composite climbed 1.1% and 1.0%, respectively, and the small-cap Russell 2000 added 0.8%.

The threat of a trade war was still on investors' minds on Monday morning, leading to a lower open on Wall Street, but House Speaker Paul Ryan (R-WI) helped ease concerns by publicly opposing the tariffs on steel and aluminum imports that President Trump proposed last week. Mr. Trump responded by saying that he was "not backing down" from his plan, but he did leave a door cracked for Canada and Mexico, saying that the two countries may be able to sidestep the tariffs if they agree to a "new and fair" NAFTA deal.

The S&P 500 opened with a loss of around 0.6%, but started climbing about an hour into the session. The benchmark index eventually finished just a tick below session high, with each of its eleven sectors settling in positive territory. The utilities group (+2.0%) led the charge, but the influential financial sector (+1.4%) wasn't far behind. The heavily-weighted health care and technology spaces were the weakest performers, but still finished with gains of 0.9% apiece.

In corporate news, the U.S. government ordered Qualcomm (QCOM 64.01, -0.73) to delay its much-anticipated shareholder meeting, which was originally scheduled for Tuesday, as it reviews Broadcom's (AVGO 246.98, -3.89) hostile bid to takeover the company. The shareholder meeting was expected to feature a vote on whether to replace six of 11 directors with nominees put forth by Broadcom. Bloomberg reported on Monday afternoon that Broadcom was on track to win the six seats.

Overseas, equity indices in Europe finished mostly higher, but Italy's MIB (-0.4%) underperformed after Sunday's national elections failed to produce a clear winner. Meanwhile, in Germany, the CDU and SPD parties agreed on their governing coalition, thereby removing any leadership uncertainty in Europe's largest and most influential economy.

In Asia, stock markets finished on a mixed note, with Hong Kong's Hang Seng (-2.3%) showing relative weakness.

Investors received just one piece of economic data on Monday, the ISM Services Index for February, which came in better than expected (59.5 actual vs 58.8 Briefing.com consensus). The key takeaway from the report is that business activity in the non-manufacturing sector is still running at a healthy level, which is contributing to rising costs.

Outside of equities, U.S. Treasuries finished Monday on a lower note, pushing yields higher across the curve; the benchmark 10-yr yield climbed two basis points to 2.88%. Meanwhile, West Texas Intermediate crude futures rallied 2.2% to $62.56 per barrel as energy leaders from around the globe headed to Houston for CERAWeek.
Dow: +336.70… | Nasdaq: +72.84… | S&P: +29.69…
NASDAQ Adv/Dec 2018/920. …NYSE Adv/Dec 2159/770.

03:35PM ET
[BRIEFING.COM]

Overall, commodities, as measured by the Bloomberg Commodity Index, are up 0.6% at 88.6781, ending the day in positive territory, despite modest strength seen in the dollar index of +0.1%
Energy:
Mar WTI crude oil futures gained some steam in morning trade and held the day's gains
Crude ultimately settled +$1.32 (or +2.2%) at $62.56/barrel on the day
In other energy, Mar natural gas settled +$0.01 at $2.70/MMBtu
Precious metals:
Apr gold settled -$3.60 at $1320.20/oz, while Mar silver settled -$0.01 to $16.42/oz
Mar copper settled +$0.01 at $3.13/lb
Ag:
Apr corn settled +$0.02 at $3.87/bushel

Dow: +380.32… | Nasdaq: +85.12… | S&P: +33.63…
NASDAQ Adv/Dec 2109/845. …NYSE Adv/Dec 2125/818.

02:55PM ET

[BRIEFING.COM] The major averages enter the final hour of trading at their best marks of the day, sporting gains of around 1.1% apiece.

Looking ahead to Tuesday, investors will receive earnings from several notable companies, including Target (TGT 75.29, +0.14) in the morning and Ross Stores (ROST 77.96, -0.46), Urban Outfitters (URBN 36.28, -0.20), Autodesk (ADSK 118.68, +2.40), and H&R Block (HRB 25.74, +1.05) in the afternoon.

As for economic data, January Factory Orders (Briefing.com consensus -1.3%) will be released at 10:00 AM ET.
Dow: +328.87… | Nasdaq: +76.21… | S&P: +30.28…
NASDAQ Adv/Dec 1857/807. …NYSE Adv/Dec 2072/851.

02:30PM ET

[BRIEFING.COM] The Dow Jones Industrial Average is on pace to snap its recent four-session decline; the index shows gains of about 1.0% at this juncture.

In currencies, the euro has strengthened against the US dollar (1.2325, +0.1%), as has the pound (1.3834, +0.3%), but the yen has slipped (106.15, -0.4%). The US Dollar Index is currently on track to snap a two-session losing streak; the index showed losses of around 0.1% at lows, but is currently up 0.1%.

In cryptocurrencies, bitcoin (11663.00, +283.00) boasts gains of about 2.4%, approaching late-January highs.
Dow: +233.43… | Nasdaq: +59.37… | S&P: +20.02…
NASDAQ Adv/Dec 1804/881. …NYSE Adv/Dec 1969/933.

02:00PM ET

[BRIEFING.COM] The major averages haven't moved much since the last update, still sporting gains above 0.9% across the board.

All 11 S&P sectors still hold gains, led by the utilities (+1.5%) and the financials (+1.4%) sectors.

Gold futures for April delivery and May silver futures closed out Monday with modest losses, dropping 0.3% to $1320.20/oz and $16.42/oz, respectively.
Dow: +259.42… | Nasdaq: +62.50… | S&P: +25.62…
NASDAQ Adv/Dec 1852/851. …NYSE Adv/Dec 2007/877.

01:30PM ET

[BRIEFING.COM] The major U.S. indices are at their best levels of the day as Wall Street displays an impressive start to the week in the wake of last week's 'trade war' stoked selloff.

A look inside the Dow Jones Industrial Average shows that Caterpillar (CAT 151.17, +4.79), General Electric (GE 14.55, +0.43), & McDonald's (MCD 151.22, +2.95) are outperforming. GE is among the Dow's tops gainers following positive commentary from analysts at William Blair and reports that at least two Chinese companies are weighing bids for GE's lighting assets, while McDonald's is seeing a modest recovery from Friday's analyst-driven sell-off.

Conversely, Nike (NKE 65.08, -0.81) is the worst-performing Dow component as shares see an extension of recent weakness.

On the heels of today's rally, the DJIA is now down just 0.95% this month.
Dow: +256.87… | Nasdaq: +74.60… | S&P: +27.66…
NASDAQ Adv/Dec 1921/800. …NYSE Adv/Dec 2071/809.

01:00PM ET

[BRIEFING.COM] Stocks are up for the second consecutive session this afternoon, with the major averages sporting gains of around 0.9% apiece.

Wall Street opened Monday's session in negative territory as investors continued to digest last week's tariff announcement from President Trump, but stocks started trimming their losses about an hour into the session. The S&P 500 held a loss of 0.6% at its worst mark of the day, but is currently trading at its session high.

President Trump tweeted early this morning that Canada and Mexico can avoid his planned tariffs on steel and aluminum imports only if they agree to a "new and fair" trade deal. Representatives from the U.S., Canada, and Mexico are meeting in Mexico City today to wrap up the latest round of NAFTA negotiations.

Meanwhile, in Houston, energy leaders from around the globe are set to kick off CERAWeek, which is one of the industry's most notable gatherings. West Texas Intermediate crude futures have rallied 2.1% to $62.56 per barrel today, while the energy sector (+1.0%) trades a step ahead of the broader market.

All 11 S&P 500 sectors are trading in the green, with the financials (+1.2%), materials (+1.1%), utilities (+1.4%), and real estate (+1.6%) sectors setting the pace. The industrial sector (+0.4%) is the weakest performer, while the heavily-weighted health care group (+0.6%) is also struggling to keep pace.

Corporate news has been light today, but it's worth noting that the U.S. government has ordered Qualcomm (QCOM 64.07, -0.67) to delay its much-anticipated shareholder meeting, which was originally scheduled for tomorrow, as it reviews Broadcom's (AVGO 250.09, -0.78) hostile bid to takeover the company.

In Europe, equity indices finished mostly higher, but Italy's MIB (-0.4%) underperformed after Sunday's national elections failed to produce a clear winner. Meanwhile, in Germany, the CDU and SPD parties agreed on their governing coalition, thereby removing any leadership uncertainty in Europe's largest and most influential economy.

Investors received just one piece of economic data today, the ISM Services Index for February, which came in better than expected (59.5 actual vs 58.8 Briefing.com consensus). The key takeaway from the report is that business activity in the non-manufacturing sector is still running at a healthy level, which is contributing to rising costs.

U.S. Treasuries are lower today, pushing yields back towards multi-year highs; the benchmark 10-yr yield is up two basis points at 2.88%, which places it about seven basis points from the four-year high it hit a little less than two weeks ago. Meanwhile, the U.S. Dollar Index is flat at 89.99.
Dow: +238.60… | Nasdaq: +65.53… | S&P: +25.67…
NASDAQ Adv/Dec 1836/898. …NYSE Adv/Dec 1993/871.

12:25PM ET

[BRIEFING.COM] The major averages have ticked down from their session highs, but are still up around 0.7% apiece.

In Europe, equity indices finished mostly higher, but Italy's MIB (-0.4%) underperformed after Sunday's national elections failed to produce a clear winner. Meanwhile, in Germany, the CDU and SPD parties agreed on their governing coalition, thereby removing any leadership uncertainty in Europe's largest and most influential economy.

The euro is up 0.1% against the U.S. dollar at 1.2329, and the British pound is up 0.4% against the greenback at 1.3855.
Dow: +156.40… | Nasdaq: +18.44… | S&P: +13.99…
NASDAQ Adv/Dec 1683/1053. …NYSE Adv/Dec 1905/960.

11:55AM ET

[BRIEFING.COM] The major averages have continued climbing, with the S&P 500 extending its gain to 0.8% from 0.5% at the last update.

11 of 11 sectors are trading in positive territory moving into the afternoon. The financials (+1.1%), energy (+1.0%), materials (+1.0%), utilities (+1.4%), and real estate (+1.5%) spaces are the strongest groups, while industrials (+0.6%) and health care (+0.6%) exhibit relative weakness.

In the bond market, U.S. Treasuries have been ticking lower, giving back their earlier gains. The 10-yr yield, which moves inversely to the price of the 10-yr Treasury note, is up one basis point at 2.87% after trading around 2.85% early this morning.
Dow: +183.45… | Nasdaq: +56.40… | S&P: +21.69…
NASDAQ Adv/Dec 1883/894. …NYSE Adv/Dec 1986/861.

11:25AM ET

[BRIEFING.COM] Equities have popped into positive territory in recent trading; the major averages are up around 0.5% apiece.

West Texas Intermediate crude futures are up 1.7% at $62.29 per barrel after hovering around their unchanged marks in pre-market trading. OPEC oil ministers and other oil leaders from around the globe are set to kick off CERAWeek, which is the energy industry's largest conference, today in Houston.

The energy sector has moved in tandem with the price of crude oil, adding 1.0%. The utilities (+1.2%) and real estate (+1.4%) sectors are trading a step ahead of the energy group, while the remaining sectors sport gains between 0.3% and 0.9%.
Dow: +130.97… | Nasdaq: +34.69… | S&P: +16.43…
NASDAQ Adv/Dec 1794/969. …NYSE Adv/Dec 1872/953.

10:55AM ET

[BRIEFING.COM] Equities have jumped from session lows to session highs in recent trading, trimming the S&P 500's loss to 0.1% from 0.6%.

The industrial sector is trading at the bottom of the sector standings this morning, down 0.6%, as Dow component Boeing (BA 338.95, -5.71) declines for the fourth day in a row; BA shares are down 1.7%. Transports have also weighed on the industrial sector, pushing the Dow Jones Transportation Average lower by 1.1%.

Meanwhile, the lightly-weighted utilities (+1.0%) and real estate (+1.0%) sectors are the best-performing groups.
Dow: -36.97… | Nasdaq: -8.64… | S&P: -1.86…
NASDAQ Adv/Dec 1408/1371. …NYSE Adv/Dec 1352/1436.

10:00AM ET

[BRIEFING.COM] The major averages are hovering near their opening levels, down 0.4% apiece.

Just in, the ISM Services Index for February dipped to 59.5 (Briefing.com consensus 58.8) from an unrevised reading of 59.9 in January.
Dow: -111.85… | Nasdaq: -34.70… | S&P: -11.36…
NASDAQ Adv/Dec 1073/1677. …NYSE Adv/Dec 1151/1581.

09:40AM ET

[BRIEFING.COM] The major averages are modestly lower, showing losses of around 0.3% apiece.

Most of the S&P 500's 11 sectors are trading in the red, with the top-weighted financials (-0.4%) and technology (-0.4%) sectors leading the retreat. Conversely, the energy (unch), utilities (unch), and consumer staples (unch) groups are the top performers, hovering near their unchanged marks.

As a reminder, the ISM Services Index for February (Briefing.com consensus 58.8) will cross the wires at 10:00 AM ET.
Dow: -61.66… | Nasdaq: -18.84… | S&P: -6.74…
NASDAQ Adv/Dec 1235/1434. …NYSE Adv/Dec 1147/1482.

09:10AM ET
[BRIEFING.COM] S&P futures vs fair value: -16.80. Nasdaq futures vs fair value: -31.80.

The S&P 500 futures are pointing towards a lower open, trading 17 points, or 0.6%, below fair value.

In Washington, President Trump tweeted this morning that last week's proposed tariffs on steel and aluminum imports will only come off if a "new and fair" NAFTA agreement is signed. Representatives from the U.S., Canada, and Mexico will be meeting in Mexico City today, looking to wrap up the latest round of NAFTA negotiations.

Overseas, equity markets in the Asia-Pacific region started the week on a mixed note, while European bourses are mostly higher--with the exception of Italy's MIB (-1.2%). Italian national elections on Sunday produced an inconclusive result, likely ushering in a period of political instability, as populist parties staged a strong showing.

However, in Germany, the CDU and SPD parties agreed on their governing coalition, thereby removing any leadership uncertainty in Europe's largest and most influential economy.

U.S. Treasuries are higher this morning, pushing yields into the red; the benchmark 10-yr yield is down two basis points at 2.84%. Meanwhile, the U.S. Dollar Index is up 0.1% at 90.03, and West Texas Intermediate crude futures are flat at $61.27 per barrel as energy executives and oil ministers from around the globe kick off CERAWeek in Houston.

Today's lone economic release, the ISM Services Index for February (Briefing.com consensus 58.8), will cross the wires at 10:00 AM ET.

08:50AM ET
[BRIEFING.COM] S&P futures vs fair value: -9.80. Nasdaq futures vs fair value: -12.80.

The S&P 500 futures are trading 10 points, or 0.4%, below fair value.

Equity indices in the Asia-Pacific region began the week on a mixed note. China's government set a 6.5% growth target for 2018, adding that prudent and neutral monetary policy will be maintained. The minimum wage will be adjusted "reasonably" while taxes on manufacturing and transportation will be lowered. Taxes for enterprises and individuals will be lowered by CNY800 billion while tariffs on vehicles and consumer goods will also be cut. Elsewhere, Bank of Japan Governor Haruhiko Kuroda is expected to sail through tomorrow's confirmation hearings. Bank of Korea Governor Lee-Ju-yeol is expected to be reappointed to a second term.

In economic data:
China's February Caixin Services PMI 54.2 (expected 54.3; last 54.7)
Hong Kong's February Manufacturing PMI 51.7 (last 51.1)
India's February Nikkei Services PMI 47.8 (last 51.7)
Australia's January Building Approvals +17.1% month-over-month (expected 5.1%; last -20.6%). Q4 Gross Operating Profits +2.2% quarter-over-quarter (expected 1.6%; last -0.1%)

---Equity Markets---

Japan's Nikkei lost 0.7%. Mitsui Mining & Smelting, Showa Denko, Tokai Carbon, Mitsubishi Motors, Pacific Metals, Suzuki Motor, and Sumitomo Chemical posted losses between 3.3% and 7.3%.
Hong Kong's Hang Seng fell 2.3% amid broad weakness. China Unicom Hong Kong fell 5.9% while China Mobile lost 3.2% after plans to cut mobile internet rates and cancel internet roaming fees were announced. Hang Seng Bank, New World Development, AIA Group, Sun Hung Kai Properties, and China Construction Bank posted losses between 2.8% and 3.6%.
China's Shanghai Composite edged up 0.1%. Shanghai Shentong Metro, Insigma Technology, Ningbo Joyson Electronic, and Hubei Jumpcan Pharmaceutical rose between 5.6% and 6.4%.
India's Sensex settled lower by 0.9%. Tata Motors slumped 5.0% while Tata Steel, Bajaj Auto, Reliance Industries, Coal India, Dr. Reddy's Labs, Hindustan Unilever, and Infosys posted losses between 0.6% and 3.0%.

Major European indices trade on a mostly higher note while Italy's MIB (-1.0%) underperforms after yesterday's election produced an inconclusive result. Movimento Cinque Stelle received 32.3% of the vote, but the party is likely to take a backseat to a right-wing coalition composed of Matteo Salvini's Lega Nord, Silvio Berlusconi's Forza Italia, and Giorgia Meloni's Fratelli d'Italia. A coalition made up of Movimento Cinque Stelle and Lega Nord would likely invite speculation about Italy's exit from the euro, since Lega Nord opposes the single currency. In Germany, SPD voted in favor of forming a coalition with Angela Merkel's CDU/CSU after record negotiations.

In economic data:
Eurozone February Services PMI 56.2 (expected 56.7; last 56.7). January Retail Sales -0.1% month-over-month (expected 0.3%; last -1.0%); +2.3% year-over-year (consensus 2.1%; last 2.1%). March Sentix Investor Confidence 24.0 (expected 31.1; last 31.9)
Germany's February Services PMI 55.3, as expected (last 55.3)
UK's February Services PMI 54.5 (expected 53.3; last 53.0)
France's February Services PMI 57.4 (expected 57.9; last 57.9)
Italy's February Services PMI 55.0 (expected 57.3; last 57.7)
Spain's February Services PMI 57.3 (expected 56.5; last 56.9)

---Equity Markets---

Germany's DAX is higher by 0.7%. Deutsche Bank has climbed 1.3% while Infineon, Linde, SAP, Adidas, Merck, BASF, and Lufthansa are up between 0.6% and 2.1%. Automakers BMW, Daimler, and Volkswagen are down between 0.8% and 2.1%.
UK's FTSE is higher by 0.2% with select consumer names showing relative strength. Persimmon, Barratt Developments, Morrison Supermarkets, Taylor Wimpey, and Next sport gains between 1.0% and 2.1%. On the downside, Capita, ITV, HSBC, Associated British Foods, Standard Life, and Standard Chartered show losses between 0.4% and 5.9%.
France's CAC trades up 0.2%. LafargeHolcim, Atos, TechnipFMC, STMicroelectronics, Kering, and Peugeot are up between 1.0% and 2.6% while AXA is the weakest performer, falling 9.3%, amid reports the company is close to acquiring XL Group.
Italy's MIB trades lower by 1.0%. Mediaset has slid 6.4% while financials like Bper Banca, Banco Bpm, UBI Banca, UniCredit, Intesa Sanpaolo, Mediobanca, and FinecoBank show losses between 1.7% and 6.8%.


08:28AM ET
[BRIEFING.COM] S&P futures vs fair value: -9.30. Nasdaq futures vs fair value: -7.00.

The S&P 500 futures are trading nine points, or 0.3%, below fair value.

Looking ahead, the Employment Situation report for February will be released on Friday morning. The Briefing.com consensus expects the report will show the addition of 210,000 nonfarm payrolls, an increase of 0.2% in average hourly earnings, and an unemployment rate of 4.0% (down from 4.1% in January).

Retailers will dominate this week's earnings docket, with Target (TGT), Ross Stores (ROST), and Urban Outfitters (URBN) due to report on Tuesday, Abercrombie & Fitch (ANF), Dollar Tree (DLTR), and Costco (COST) set to report on Wednesday, and Kroger (KR) ready to report on Thursday.

08:00AM ET
[BRIEFING.COM] S&P futures vs fair value: -8.80. Nasdaq futures vs fair value: -13.00.

Stocks ended a three-session skid with a win on Friday, but look poised to resume their downward march this morning. The S&P 500 futures are trading nine points, or 0.3%, below fair value.

Overseas, equity markets in the Asia-Pacific region started the week on a mixed note, while European bourses are mostly higher--with the exception of Italy's MIB (-0.5%). Italian national elections on Sunday produced an inconclusive result, likely ushering in a period of political instability, as populist parties staged a strong showing.

U.S. Treasuries are relatively flat this morning, with the yield on the 10-yr note down one basis point at 2.85%. Meanwhile, the U.S. Dollar Index is up 0.2% at 90.11, and West Texas Intermediate crude futures are flat at $61.24 per barrel as energy executives and oil ministers from around the globe kick off CERAWeek in Houston.

In Washington, President Trump tweeted that his proposed tariffs on steel and aluminum imports, which he announced last week, will only come off if a "new and fair" NAFTA agreement is signed. Representatives from the U.S., Canada, and Mexico will be in Mexico City today, looking to wrap up the latest round of NAFTA negotiations.

Investors will receive just one piece of economic data today, the ISM Services Index for February (Briefing.com consensus 58.8), which will be released at 10:00 AM ET.

In U.S. corporate news:

Qualcomm (QCOM 63.65, -1.09): -1.7% after requesting a U.S. government review of Broadcom's (AVGO 250.55, -0.32) takeover offer and thereby delaying a shareholder vote.
Monster Beverage (MNST 55.09, +0.93): +1.7% after Deutsche Bank upgraded shares to 'Buy' from 'Hold.'

Reviewing overnight developments:

Equity indices in the Asia-Pacific region began the week on a mixed note. Japan's Nikkei -0.7%, Hong Kong's Hang Seng -2.3%, China's Shanghai Composite +0.1%, India's Sensex +0.9%.
In economic data:
China's February Caixin Services PMI 54.2 (expected 54.3; last 54.7)
Hong Kong's February Manufacturing PMI 51.7 (last 51.1)
India's February Nikkei Services PMI 47.8 (last 51.7)
Australia's January Building Approvals +17.1% month-over-month (expected 5.1%; last -20.6%). Q4 Gross Operating Profits +2.2% quarter-over-quarter (expected 1.6%; last -0.1%)
In news:
China's government set a 6.5% growth target for 2018, adding that prudent and neutral monetary policy will be maintained. The minimum wage will be adjusted "reasonably" while taxes on manufacturing and transportation will be lowered. Taxes for enterprises and individuals will be lowered by CNY800 billion while tariffs on vehicles and consumer goods will also be cut.
Bank of Japan Governor Haruhiko Kuroda is expected to sail through tomorrow's confirmation hearings.
Bank of Korea Governor Lee-Ju-yeol is expected to be reappointed to a second term.

Major European indices trade on a mostly higher note while Italy's MIB (-0.5%) underperforms after yesterday's election produced an inconclusive result. Germany's DAX +0.6%, UK's FTSE +0.2%, France's CAC +0.1%.
In economic data:
Eurozone February Services PMI 56.2 (expected 56.7; last 56.7). January Retail Sales -0.1% month-over-month (expected 0.3%; last -1.0%); +2.3% year-over-year (consensus 2.1%; last 2.1%). March Sentix Investor Confidence 24.0 (expected 31.1; last 31.9)
Germany's February Services PMI 55.3, as expected (last 55.3)
UK's February Services PMI 54.5 (expected 53.3; last 53.0)
France's February Services PMI 57.4 (expected 57.9; last 57.9)
Italy's February Services PMI 55.0 (expected 57.3; last 57.7)
Spain's February Services PMI 57.3 (expected 56.5; last 56.9)
In news:
Movimento Cinque Stelle received 32.3% of the vote in Italy, but the party is likely to take a backseat to a right-wing coalition composed of Matteo Salvini's Lega Nord, Silvio Berlusconi's Forza Italia, and Giorgia Meloni's Fratelli d'Italia. A coalition made up of Movimento Cinque Stelle and Lega Nord would likely invite speculation about Italy's exit from the euro, since Lega Nord opposes the single currency.
In Germany, SPD voted in favor of forming a coalition with Angela Merkel's CDU/CSU after record negotiations.


06:59AM ET
[BRIEFING.COM] S&P futures vs fair value: -8.50. Nasdaq futures vs fair value: -5.80.

06:59AM ET
[BRIEFING.COM] Nikkei...21042...-139.60...-0.70%. Hang Seng...29886...-697.10...-2.30%.

06:59AM ET
[BRIEFING.COM] FTSE...7082.78...+12.90...+0.20%. DAX...11980.26...+66.60...+0.60%.

04:30PM ET

[BRIEFING.COM] Wall Street finished a disappointing week with a mostly positive outing on Friday. The S&P 500 and the Nasdaq finished with gains of 0.5% and 1.1%, respectively, largely thanks to a late rally that left the two indices at their best marks of the day. Meanwhile, the Dow lost 0.3%, and the small-cap Russell 2000 jumped 1.7%.

President Trump's decision to impose tariffs on steel and aluminum imports, which was announced on Thursday, prompted threats of retaliation from leaders around the globe and sent stocks lower in Asia and Europe overnight. Wall Street joined the global sell off at the opening bell, with the S&P 500 quickly dropping 1.0%, but the market started to regain its footing about an hour into the session. By midday, the S&P 500 had climbed all the way back to its unchanged mark.

The outperformance of the heavily-weighted health care (+1.0%) and technology (+1.0%) sectors, which represent around 40.0% of the broader market combined, helped lift the benchmark index. Within the health care group, biotechnology shares showed particular strength, evidenced by the 2.4% increase in the iShares Nasdaq Biotechnology ETF (IBB 109.65, +2.61). Meanwhile, chipmakers were among the top performers in the tech space, pushing the PHLX Semiconductor Index higher by 1.8%.

In total, seven of eleven S&P 500 sectors finished in the green. Health care and technology were the best performers, while real estate (-0.4%) was the worst.

The latest batch of fourth quarter earnings included several retail names, including Gap (GPS 34.18, +2.48, +7.8%), Nordstrom (JWN 53.04, +2.93, +5.9%), Foot Locker (FL 40.04, -5.84, -12.7%), and J.C. Penney (JCP 3.71, -0.21, -5.4%). The results were mostly better than expected (GPS, FL, and JCP all beat earnings estimates, while JWN missed).

Meanwhile, Dow component McDonald's (MCD 148.27, -7.43) dropped 4.8%, hitting its lowest level in more than nine months, after RBC Capital Markets trimmed its target price for MCD shares to $170 from $190, citing a disappointing launch for the fast food giant's $1, $2, $3 menu.

Elsewhere, U.S. Treasuries gave back most of their Thursday advance on Friday, pushing yields higher across the curve; the benchmark 10-yr yield jumped five basis points to 2.86%. The 10-yr yield finished the week lower by one basis point and nine basis points below the four-year high it hit on February 21.

In currencies, the yen advanced 0.5% against the U.S. dollar to 105.72, which is its best level since November 2016, after Bank of Japan Governor Haruhiko Kuroda said the BoJ would consider exiting from its aggressive monetary easing as early as 2019. Meanwhile, the euro jumped 0.5% against the greenback to 1.2329.

Friday's economic data was limited to the final reading of the University of Michigan Consumer Sentiment Index for February:

The final reading of the University of Michigan Consumer Sentiment Index for February dipped to 99.7 (Briefing.com consensus 99.5) from 99.9 in the preliminary reading.
The key takeaway from the report is that consumer sentiment remains near multi-year highs with consumers showing little concern about the prospect of rising interest rates.

On Monday, investors will receive the ISM Services Index for February (Briefing.com consensus 58.8) at 10:00 AM ET.

Nasdaq Composite: +5.1% YTD
S&P 500: +0.7% YTD
Dow Jones Industrial Average: -0.7% YTD
Russell 2000: -0.2% YTD

Week In Review: Selling Resumes

Stocks tumbled this week, with the S&P 500 dropping 2.0%. The Nasdaq Composite did a little better, and the Dow Jones Industrial Average did a little worse, losing 1.1% and 3.1%, respectively. The small-cap Russell 2000 showed relative strength, but still finished lower by 1.0%.

The week actually began on a positive note, with the S&P 500 jumping 1.2% on Monday, but took a turn for the worst on Tuesday when new Fed Chairman Jerome Powell testified before the House Financial Services Committee. Mr. Powell's prepared remarks didn't contain any surprises, calling for a continued path of gradual rate hikes. However, in the Q&A session, Mr. Powell noted that his economic projections have increased since the December FOMC meeting, prompting a negative reaction on Wall Street due to concerns that the Fed may hike rates more than expected.

The Fed forecasted three rate hikes for 2018 at its December meeting, but, in light of Mr. Powell's upwardly revised growth projections, investors have increased their expectations for a fourth hike. The CME FedWatch Tool places the chances of a fourth rate hike at 30.7%, up from 24.4% last week. The chances of a March rate hike are at 83.1%.

Fast-forwarding to Thursday, the equity market was dealt another blow, this time from President Trump, who announced that he'll be imposing tariffs on steel and aluminum imports--25% for steel and 10% for aluminum. Mr. Trump's decision prompted concerns about higher prices and retaliation from China and other trading partners.

However, outside of fundamental factors affecting this week's sell off, it's also important to note that the S&P 500 broke below its 50-day moving average, a key technical level that's provided the market with support since the 2016 presidential election. The benchmark index dropped below its 50-day moving average for the first time in five months during the big sell off at the beginning of February and has ticked back above it a few times since--most notably on Monday, when the S&P 500 hit a three-week high.

The S&P 500 initially found support at its 50-day moving average on Wednesday, but selling accelerated after the index broke through the level on its second attempt. If this week's selling continues, investors will be looking for other potential areas of support, including the S&P 500's February low (2581) and its 200-day moving average (2561).

11 of 11 S&P 500 sectors finished the week in negative territory, with industrials (-3.3%) and materials (-4.0%) being the weakest performers. The technology (-0.8%), consumer staples (-1.3%), and telecom services (-0.7%) groups exhibited relative strength, but the remaining sectors lost between 2.0% and 2.9%.

A slew of retailers reported earnings this week. TJX (TJX) rallied 7.0% on Wednesday after reporting better-than-expected earnings and revenues for the fourth quarter and raising its profit guidance. Conversely, Lowe's (LOW) dropped 6.5% in the same session after missing Q4 earnings estimates and lowering its profit guidance for fiscal year 2019. The SPDR S&P Retail ETF (XRT) finished the week lower, but ahead of the broader market, losing 1.4%.

In other corporate news, Comcast (CMCSA) dropped 7.4% on Tuesday after upping a bid from 21st Century Fox (FOXA) for a large stake in British broadcaster Sky.
Dow: -70.92… | Nasdaq: +77.31… | S&P: +13.58…
NASDAQ Adv/Dec 2198/735. …NYSE Adv/Dec 1833/1087

Special thanks to Bloomberg, Briefing, Reuters and Yahoo! Finance for their market summaries. Also, thank you for the review of TheStrategyLab performance record...hopefully the links and data will be useful for you. gm

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