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The Market at 04:30PM ET
Dow: -70.92… | Nasdaq: +77.31… | S&P: +13.58…
NASDAQ Vol: 2.28 bln… Adv: 2198… Dec: 735…
NYSE Vol: 919.0 mln… Adv: 1833… Dec: 1087…

Moving the Market

Investors continue to digest President Trump's Thursday decision to impose tariffs on steel and aluminum imports--25% for steel, 10% for aluminum

Heavily-weighted technology and health care sectors outperform

Sector Watch
Strong: Technology, Health Care, Consumer Staples, Telecom Services
Weak: Consumer Discretionary, Industrials, Materials, Utilities, Real Estate

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.

03:45PM ET
[BRIEFING.COM]

Overall, commodities, as measured by the Bloomberg Commodity Index, are down 0.1% at 88.1477
Dollar index is currently -0.4% at 90.22
Energy:
Mar WTI crude oil futures came back with late-day gains, ending the day near today's high
Crude ultimately settled +$.24 at $61.24/barrel on the day
In other energy, Mar natural gas settled unch at $2.69/MMBtu
Apr gold settled +$18.70 at $1323.80/oz, while Mar silver settled $0.20 to $16.47/oz
Mar copper settled unch to $3.12/lb

Dow: -103.87… | Nasdaq: +62.17… | S&P: +9.63…
NASDAQ Adv/Dec 2134/805. …NYSE Adv/Dec 1764/1149.

02:55PM ET

[BRIEFING.COM] The S&P 500, which is up 0.2% in today's session, enters the final hour of trading with a weekly loss of 2.4%.

All 11 of the S&P 500's sectors are lower for the week, with the materials sector (-4.0%) being the weakest performer. The technology (-1.2%), consumer staples (-1.7%), and telecom services (-1.1%) sectors have exhibited relative strength, but the remaining groups are down between 2.3% and 3.5%.

As for the Nasdaq and the Dow, the two averages are down 1.5% and 3.3%, respectively, week to date.
Dow: -137.05… | Nasdaq: +44.81… | S&P: +3.24…
NASDAQ Adv/Dec 1877/608. …NYSE Adv/Dec 1631/1270.

02:30PM ET

[BRIEFING.COM] The S&P 500 has made up ground on the Nasdaq Composite since the last update; the benchmark index moved above its Thursday close recently, and now shows gains of about 0.1%.

FAANG stocks are split with Facebook (FB 175.66, -0.27, -0.2%) and Amazon (AMZN 1490.00, -3.45, -0.2%) holding slight losses, while Apple (AAPL 175.45, +0.45, +0.3%), Netflix (NFLX 295.32, +4.93, +1.7%), and Alphabet (GOOG 1073.14, +3.62, +0.3%) display gains between 0.3% and 1.7%.

In currencies, the yen has strengthened against the US dollar (105.55, +0.7%), hovering near its best levels since the 2016 U.S. presidential election. Elsewhere, the euro has gained against the US dollar (1.2323, +0.5%), returning to mid-February levels.
Dow: -99.60… | Nasdaq: +33.47… | S&P: +2.29…
NASDAQ Adv/Dec 1883/648. …NYSE Adv/Dec 1546/1348.

02:00PM ET

[BRIEFING.COM] The Nasdaq Composite has jostled with its flat line since the last update, now up about 0.2%. Both the Dow Jones Industrial Average and the S&P 500 remain below their Thursday finishes, showing losses of 0.7% and 0.1%, respectively.

Finishing out the week on a positive note, gold futures for April delivery settled higher by about $18.20 (+1.4%) to $1323.40/oz. Despite today's gains, gold futures finished the week with losses of 0.5%. Shares of gold names Randgold Resources (GOLD 82.43, +1.38, +1.7%), Barrick Gold (ABX 11.60, +0.18, +1.6%) -- stock was downgraded to 'Hold' earlier at Argus -- and Sibanye-Stillwater (SBGL 4.02, +0.05, +1.4%) are slightly higher today to boot.
Dow: -210.41… | Nasdaq: +10.21… | S&P: -7.91…
NASDAQ Adv/Dec 1823/727. …NYSE Adv/Dec 1497/1390.

01:30PM ET

[BRIEFING.COM] The S&P 500 (-0.2%) has dipped back into the red after making a brief appearance in positive territory.

Despite the broader market's struggles, small caps have done well today, sending the Russell 2000 higher by 1.3%. Microsemi (MSCC 67.22, +2.92) is among the top-performing names in the Russell 2000, up 4.6%, after agreeing to be acquired by Microchip Technology (MCHP 90.68, +1.66) for $68.78 per share in cash.

The Russell 2000 is seen as a leading indicator for the U.S. economy as smaller companies typically have little to no international presence and, therefore, are largely dependent on domestic customers.
Dow: -173.82… | Nasdaq: +9.21… | S&P: -4.74…
NASDAQ Adv/Dec 1787/791. …NYSE Adv/Dec 1436/1447.

01:00PM ET

[BRIEFING.COM] Stocks are trying to end a three-session skid today as investors continue to digest President Trump's Thursday decision to impose tariffs on steel and aluminum imports. The S&P 500 is drifting a tick above its flat line this afternoon, while the tech-heavy Nasdaq sports a gain of 0.4% and the Dow Jones Industrial Average shows a loss of 0.4%.

The market opened in negative territory, with the S&P 500 down about 1.0% at its low, but began trimming losses about an hour into the session. The early losses followed a sell off overseas as investors in Asia and Europe mulled the potential effects of Mr. Trump's tariffs--namely, how trade partners might retaliate.

Japan's Nikkei (-2.5%) led the retreat in Asia as the yen jumped 0.6% against the dollar to 105.60, its highest level since the U.S. presidential election. Bank of Japan Governor Haruhiko Kuroda said the BoJ would consider ending ultra-loose monetary policy if inflation hits 2.0% around fiscal 2019--which is what the central bank is currently forecasting.

Meanwhile, in Europe, France's CAC (-2.4%) paced the slide as the euro climbed 0.4% against the dollar to 1.2309.

Seven of eleven S&P 500 sectors are trading lower, with the lightly-weighted utilities (-0.6%) and real estate (-0.7%) spaces being the weakest groups. The consumer discretionary (-0.4%) and industrials (-0.3%) sectors are also relatively weak, while the heavily-weighted technology (+0.2%) and health care (+0.7%) sectors outperform.

Within the health care space, biotechnology names are particularly strong, evidenced by the iShares Nasdaq Biotechnology ETF (IBB 109.02, +1.98), which is up 1.9%.

In corporate news, McDonald's (MCD 148.87, -6.83) is down 4.4%, hovering at a nine-month low, after RBC Capital Markets lowered its target price for MCD shares to $170 from $190. Meanwhile, Gap (GPS 33.98, +2.27) has jumped 7.1% after reporting better-than-expected earnings and revenues for the fourth quarter and issuing upbeat profit guidance.

Elsewhere, U.S. Treasuries have given back most of yesterday's gains today, pushing yields higher across the curve; the benchmark 10-yr yield is up six basis points at 2.86%.

Today'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 dropped 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.

Dow: -89.21… | Nasdaq: +41.32… | S&P: +5.29…
NASDAQ Adv/Dec 1946/658. …NYSE Adv/Dec 1597/1278.

12:30PM ET

[BRIEFING.COM] The major U.S. indices continue to recover from this morning's worst levels, and are currently trading mixed with the Nasdaq in positive territory, while the Dow Jones Industrial Average & S&P 500 still remain lower on the session.

A look inside the Dow shows that McDonald's (MCD 148.16, -7.54), Caterpillar (CAT 147.25, -2.98), & Boeing (BA 343.84, -5.85) are underperforming. McDonald's is the Dow's biggest laggard following some cautious commentary by analysts at RBC, who lowered their price target on shares in the wake of an apparent lackluster launch for the fast food giant's new $1, $2, $3 value menu. Meanwhile, Caterpillar & Boeing are under pressure as they find themselves on a long list of companies seen as being negatively impacted by President Trump's steel and aluminum tariff announcement.

Conversely, General Electric (GE 14.20, +0.18) is the best-performing Dow component as shares display relative strength, recovering from recent multi-year lows.

At current levels, the DJIA is poised to close the week with losses of 3.3%.
Dow: -206.18… | Nasdaq: +15.42… | S&P: -4.68…
NASDAQ Adv/Dec 1876/759. …NYSE Adv/Dec 1431/1418.

12:00PM ET

[BRIEFING.COM] The Nasdaq (+0.1%) has popped into positive territory following a nice 30-minute stretch. Meanwhile, the S&P 500 has trimmed its loss to 0.2% from 0.6%.

Biotechnology shares are outperforming today, helping to fuel the tech-heavy Nasdaq's positive performance; the iShares Nasdaq Biotechnology ETF (IBB 108.40, +1.37) is up 1.3% after dropping below its 200-day simple moving average (106.55) earlier in the session. Small-cap biotech name Innovate Biopharmaceuticals (INNT 12.48, +6.40) has spiked more than 100% today, but there's no fundamental catalyst of note behind the move.

The S&P 500's health care sector, which houses biotech names, is trading higher by 0.4%.
Dow: -216.24… | Nasdaq: +6.36… | S&P: -4.86…
NASDAQ Adv/Dec 1700/956. …NYSE Adv/Dec 1242/1621.

11:30AM ET

[BRIEFING.COM] The major averages haven't shifted much since the last update, holding losses between 0.5% and 1.5%.

Shares of McDonald's (MCD 147.48, -8.22) are down 5.3% today, hitting their lowest level in nearly 10 months, after RBC Capital Markets lowered its target price for MCD shares to $170 from $190 this morning, citing a disappointing sales impact from the $1, $2, $3 menu. McDonald's is currently the worst-performing component in the Dow.

Meanwhile, Foot Locker (FL 38.42, -7.46) is the worst-performing component in the S&P 500, down 16.4%, despite reporting above-consensus profits for the fourth quarter. FL shares are currently trading at their lowest level since mid-November.
Dow: -342.00… | Nasdaq: -34.03… | S&P: -18.40…
NASDAQ Adv/Dec 1366/1301. …NYSE Adv/Dec 851/1985.

11:00AM ET

[BRIEFING.COM] The S&P 500 has trimmed its loss to 0.6% from 1.1% in recent trading, while the Nasdaq and the Dow are lower by 0.5% and 1.2%, respectively.

Eight of eleven S&P 500 sectors are trading in negative territory this morning, with health care (+0.1%), consumer staples (+0.2%), and telecom services (+0.5%) being the three advancers. The energy group (-1.1%) is the worst performer amid a decline in the price of crude oil; WTI crude futures are down 0.9% at $60.44/bbl.

In the bond market, U.S. Treasuries have given back the bulk of their Thursday gains, pushing yields back towards their flat lines for the week. The benchmark 10-yr yield is up five basis points today and is down just two basis points for the week.
Dow: -289.60… | Nasdaq: -32.91… | S&P: -16.18…
NASDAQ Adv/Dec 1272/1439. …NYSE Adv/Dec 824/2003.

10:40AM ET

[BRIEFING.COM] Commodities begin the day lower:

Overall, commodities, as measured by the Bloomberg Commodity Index, is -0.3% at 87.9429
Dollar index is currently -0.3% at 89.97
Energy:
Apr WTI crude is in the red this morning with futures are -$0.61 at $60.38/barrel
In other energy: Apr natural gas is flat at $2.70/MMBtu
Metals:
Apr gold +$17.60 at $1322.80/oz, while Mar silver is +$0.24 at $16.52/oz
Mar copper is now -$0.01 to $3.12/lb
Finally, agriculture: Mar corn is -$0.02 at $3.84/bu.

Dow: -254.13… | Nasdaq: -22.20… | S&P: -12.19…
NASDAQ Adv/Dec 1095/1607. …NYSE Adv/Dec 800/2003.

10:00AM ET

[BRIEFING.COM] The major averages are still solidly lower this morning, with the S&P 500 down 1.0%.

Just in, the final reading of the University of Michigan Consumer Sentiment Index for February dropped to 99.7 (Briefing.com consensus 99.5) from 99.9 in the preliminary reading.
Dow: -328.21… | Nasdaq: -65.39… | S&P: -22.96…
NASDAQ Adv/Dec 859/1847. …NYSE Adv/Dec 507/2248.

09:40AM ET

[BRIEFING.COM] The major averages are down between 0.9% and 1.4%.

The financials (-1.4%), consumer discretionary (-1.3%), industrials (-1.4%), and technology (-1.2%) groups are the weakest of the S&P 500's 11 sectors, while the consumer staples (+0.1%), utilities (+0.3%), and telecom services (+0.2%) sectors are the strongest. In general, countercyclical groups are outperforming their cyclical peers.

As a reminder, the final reading of the University of Michigan Consumer Sentiment Index for February (Briefing.com consensus 99.5) will be released at 10:00 AM ET.
Dow: -311.08… | Nasdaq: -67.03… | S&P: -22.12…
NASDAQ Adv/Dec 704/1968. …NYSE Adv/Dec 483/2204.

09:13AM ET
[BRIEFING.COM] S&P futures vs fair value: -18.80. Nasdaq futures vs fair value: -77.30.

Equities are on track to open in the red, as the S&P 500 futures are trading 19 points, or 0.7%, below fair value.

The S&P 500 dropped for a third consecutive session on Thursday--extending its weekly loss to 2.5%--with most of the decline coming after President Trump said he'll be imposing tariffs on steel and aluminum imports--25% for steel and 10% for aluminum. Mr. Trump's decision has stirred fears of retaliation from other countries.

In corporate news, retailers are in focus this morning following earnings reports from Gap (GPS 33.89, +2.19), Nordstrom (JWN 47.50, -2.98), Foot Locker (FL 42.52, -3.36), and J.C. Penney (JCP 3.45, -0.47). Gap is up 6.9% in pre-market trading after reporting better-than-expected earnings and revenues for the fourth quarter and issuing upbeat profit guidance. Conversely, Nordstrom is down 5.9% after missing profit estimates, Foot Locker is down 7.3% despite reporting above-consensus earnings, and J.C. Penney is down 12.0% after issuing disappointing guidance.

Meanwhile, in the bond market, Treasuries have given back a chunk of Thursday's rally this morning, pushing yields higher across the curve. The yield on the benchmark 10-yr note is up four basis points at 2.84%, while the yield on the 2-yr note is up three basis points at 2.23%.

Investors will receive just one economic report today, the final reading of the University of Michigan Consumer Sentiment Index for February (Briefing.com consensus 99.5), which will cross the wires at 10:00 AM ET.

08:55AM ET
[BRIEFING.COM] S&P futures vs fair value: -13.80. Nasdaq futures vs fair value: -58.30.

The S&P 500 futures are trading 14 points, or 0.5%, below fair value.

Equity indices across Asia-Pacific ended the week on a lower note as the region responded to the first salvo in what could become a trade war. China's Metals Association noted that the Middle Kingdom is likely to retaliate against the imposition of tariffs on imports of metals into the United States. An official from the China Iron and Steel Association said the tariffs are "stupid" trade protection measures. Staying in China, the National People's Congress, which will set economic targets for the year ahead, will begin on Monday. Also on Monday, South Korea will nominate a new Bank of Korea leader. Bank of Japan Governor Haruhiko Kuroda will face a confirmation hearing in the Upper House on Tuesday. It is worth noting that Mr. Kuroda has raised the possibility of reversing stimulus measures around fiscal 2019/2020.

In economic data:
Japan's February Tokyo CPI +1.4% year-over-year (expected 1.5%; last 1.3%) and Tokyo Core CPI +0.9% year-over-year (expected 0.8%; last 0.7%). January Unemployment Rate 2.4% (expected 2.7%; last 2.8%) and January Jobs/applications ratio 1.59 (expected 1.60; last 1.59)
Hong Kong's January Retail Sales +4.1% year-over-year (last 5.8%)
South Korea's February Nikkei Manufacturing PMI 50.3 (last 50.7). January Industrial Production +1.0% month-over-month (expected 2.0%; last -1.7%) and January Retail Sales +1.7% month-over-month (last -2.6%)
New Zealand's January Building Consents +0.2% month-over-month (last -9.5%)

---Equity Markets---

Japan's Nikkei lost 2.5%, surrendering 3.3% for the week. Chugai Pharmaceutical was the weakest performer, falling 6.1%, while Yamaha Motor, Olympus, Dentsu, JTEKT, Rakuten, Honda Motor, Nikon, Konami, Hitachi Construction, Okuma, and Dainippon Screen Manufacturing posted losses between 3.5% and 4.6%.
Hong Kong's Hang Seng fell 1.5%, widening this week's loss to 2.2%. Financials were among the weakest performers with China Construction Bank, Ping An Insurance, China Life Insurance, ICBC, Bank of East Asia, and Bank of China losing between 1.7% and 3.0%.
China's Shanghai Composite fell 0.6% to end the week lower by 1.1%. Insigma Technology, Baoshan Iron & Steel, Fangda Special Steel Technology, Hongfa Technology, Xinjiang Bayi Iron & Steel, and Hangzhou Silan Microelectronics fell between 3.9% and 5.6%.
India's Sensex was closed for Holi. The index edged up 0.1% for the week.

Major European indices trade lower across the board with Germany's DAX (-2.1%) on the verge of sliding beneath its low from August 2017. The Federation of German Industries warned that steel tariffs in the U.S. are raising the risk of a protectionist spiral that could result in a global trade war. The European Commission noted that Greece has completed the reforms required for the disbursement of the next tranche of bailout funds. Germany's SPD will announce the results of its coalition vote on Sunday while Italians will head to the polls to select a new government. The European Central Bank is unlikely to make significant changes to its policy statement that will be released on Thursday, especially if the Italian election produces a hung parliament.

In economic data:
Eurozone January PPI +0.4% month-over-month (expected 0.4%; last 0.1%); +1.5% year-over-year (expected 1.6%; last 2.2%)
Germany's January Retail Sales -0.7% month-over-month (expected 0.9%; last -1.1%); +2.3% year-over-year (expected 3.5%; last -0.2%). January Import Price Index +0.5% month-over-month, as expected (last 0.3%); +0.7% year-over-year, as expected (last 1.1%)
UK's February Construction PMI 51.4 (expected 50.5; last 50.2)
Italy's Q4 GDP +0.3% quarter-over-quarter, as expected (last 0.5%); +1.6% year-over-year, as expected (last 1.8%)
Spain's Unemployment Change -6,300 (expected -7,200; last 63,700)

---Equity Markets---

UK's FTSE is lower by 1.1%. Miners and financials are among the laggards with Anglo American, Rio Tinto, Barclays, RBS, BHP Billiton, HSBC, Old Mutual, and Prudential show losses between 1.6% and 2.4%.
France's CAC has slid 1.9% amid broad weakness. LafargeHolcim has slid 6.0% after missing earnings expectations while ArcelorMittal, STMicroelectronics, Societe Generale, and Credit Agricole are down between 2.5% and 3.2%.
Germany's DAX is down 2.1%. Commerzbank has slumped 3.5% while other heavyweights like Siemens, Deutsche Bank, Lufthansa, Volkswagen, Daimler, BASF, and SAP are down between 1.8% and 3.4%.

08:26AM ET
[BRIEFING.COM] S&P futures vs fair value: -20.30. Nasdaq futures vs fair value: -76.80.

The S&P 500 futures are trading 20 points, or 0.8%, below fair value. For the week, the S&P 500 is down 2.5%.

11 of 11 S&P 500 sectors hold week-to-date losses, with industrials (-3.3%), energy (-3.1%), and materials (-3.8%) being the worst performers. The technology (-1.8%) and telecom services (-1.5%) sectors have exhibited relative strength, while the remaining groups hold losses between 2.1% and 3.0%.

As for the Dow and the Nasdaq, they're down 2.8% and 2.1% week to date, respectively.

07:57AM ET
[BRIEFING.COM] S&P futures vs fair value: -22.30. Nasdaq futures vs fair value: -68.50.

Stocks look poised to extend their weekly losses at the opening bell, as the S&P 500 futures are trading 22 points, or 0.8%, below fair value.

The S&P 500 dropped for a third consecutive session on Thursday--extending its weekly loss to 2.5%--with most of the decline coming after President Trump said he'll be imposing tariffs on steel and aluminum imports--25% for steel and 10% for aluminum. Mr. Trump's decision has stirred fears of retaliation from other countries.

Meanwhile, in the bond market, U.S. Treasuries have hit pause following yesterday's big rally and are currently drifting a tick below their unchanged marks. The benchmark 10-yr yield, which moves inversely to the price of the 10-yr note, is up one basis point at 2.81%.

On the data front, investors will receive just one economic report today, the final reading of the University of Michigan Consumer Sentiment Index for February (Briefing.com consensus 99.5), which will cross the wires at 10:00 AM ET.

Overseas, equity indices in Asia ended the week on a lower note, with Japan's Nikkei (-2.5%) leading the retreat, while the major bourses in Europe are also trading in the red. Germany's DAX is exhibiting relative weakness, down 2.1%, and is on the verge of sliding beneath its low from August 2017.

In U.S. corporate news:

Gap (GPS 24.22, +2.63): +8.3% after reporting better-than-expected earnings and revenues for the fourth quarter and issuing upbeat profit guidance.
Nordstrom (JWN 49.02, -1.46): -2.9% after missing Q4 profit estimates.
Foot Locker (FL 40.51, -5.37): -11.7% despite reporting above-consensus Q4 earnings.

Reviewing overnight developments:

Equity indices across Asia-Pacific ended the week on a lower note as the region responded to the first salvo in what could become a trade war. Japan's Nikkei -2.5%, Hong Kong's Hang Seng -1.5%, China's Shanghai Composite -0.6%. India's Sensex was closed for Holi.
In economic data:
Japan's February Tokyo CPI +1.4% year-over-year (expected 1.5%; last 1.3%) and Tokyo Core CPI +0.9% year-over-year (expected 0.8%; last 0.7%). January Unemployment Rate 2.4% (expected 2.7%; last 2.8%) and January Jobs/applications ratio 1.59 (expected 1.60; last 1.59)
Hong Kong's January Retail Sales +4.1% year-over-year (last 5.8%)
South Korea's February Nikkei Manufacturing PMI 50.3 (last 50.7). January Industrial Production +1.0% month-over-month (expected 2.0%; last -1.7%) and January Retail Sales +1.7% month-over-month (last -2.6%)
New Zealand's January Building Consents +0.2% month-over-month (last -9.5%)
In news:
China's Metals Association noted that the Middle Kingdom is likely to retaliate against the imposition of tariffs on imports of metals into the United States. An official from the China Iron and Steel Association said the tariffs are "stupid" trade protection measures.
Staying in China, the National People's Congress, which will set economic targets for the year ahead, will begin on Monday.
Also on Monday, South Korea will nominate a new Bank of Korea leader.
Bank of Japan Governor Haruhiko Kuroda will face a confirmation hearing in the Upper House on Tuesday. It is worth noting that Mr. Kuroda has raised the possibility of reversing stimulus measures around fiscal 2019/2020.

Major European indices trade lower across the board with Germany's DAX (-2.1%) on the verge of sliding beneath its low from August 2017. UK's FTSE -1.0%, France's CAC -1.7%.
In economic data:
Eurozone January PPI +0.4% month-over-month (expected 0.4%; last 0.1%); +1.5% year-over-year (expected 1.6%; last 2.2%)
Germany's January Retail Sales -0.7% month-over-month (expected 0.9%; last -1.1%); +2.3% year-over-year (expected 3.5%; last -0.2%). January Import Price Index +0.5% month-over-month, as expected (last 0.3%); +0.7% year-over-year, as expected (last 1.1%)
UK's February Construction PMI 51.4 (expected 50.5; last 50.2)
Italy's Q4 GDP +0.3% quarter-over-quarter, as expected (last 0.5%); +1.6% year-over-year, as expected (last 1.8%)
Spain's Unemployment Change -6,300 (expected -7,200; last 63,700)

05:54AM ET
[BRIEFING.COM] S&P futures vs fair value: -11.50. Nasdaq futures vs fair value: -27.80.

05:54AM ET
[BRIEFING.COM] Nikkei...21182...-542.80...-2.50%. Hang Seng...30583.45...-460.80...-1.50%.

05:54AM ET
[BRIEFING.COM] FTSE...7130.18...-45.50...-0.60%. DAX...11959.15...-231.80...-1.90%.

04:30PM ET

[BRIEFING.COM] Stocks tumbled for the third day in a row on Thursday, with the major averages losing between 1.3% and 1.7%.

The market kept close to its flat line for the first half of Thursday's session as investors debated their next move following Wednesday's breaching of the S&P 500's 50-day simple moving average. Stocks started slipping in the early afternoon, but began a decisive retreat not long after President Trump announced new tariffs on steel and aluminum imports. The tariffs, which are 25% for steel imports and 10% for imported aluminum, prompted concerns about higher prices and a potential retaliation from China and other countries.

Steel names U.S. Steel (X 46.01, +2.50), AK Steel (AKS 5.65, +0.49), Nucor (NUE 67.53, +2.13), and Steel Dynamics (STLD 48.10, +1.85) outperformed following the news, adding between 3.3% and 9.5%, while aluminum producer Century Aluminum (CENX 20.48, +1.43) spiked 7.5%.

However, automakers reacted negatively to the tariffs, which will likely weigh on their profit margins. General Motors (GM 37.79, -1.56), Ford Motor (F 10.29, -0.32), and Fiat Chrysler (FCAU 20.59, -0.60) dropped between 2.8% and 4.0%, while Toyota Motor (TM 130.39, -4.21) and Honda Motor (HMC 35.12, -0.97) lost 3.1% and 2.7%, respectively. Automakers also reported U.S. sales for February on Thursday, which, for the most part, declined year over year.

Looking at the broader market, 11 of 11 S&P 500 sectors finished Thursday in negative territory, with six settling with losses of at least 1.0%. The heavily-weighted financials (-1.9%), industrials (-1.9%), technology (-1.7%), and health care (-1.6%) sectors, which represent around 65.0% of the broader market combined, were the weakest performers. Conversely, the energy (-0.2%), utilities (-0.1%), and telecom services (-0.3%) sectors held up relatively well.

Stocks bounced back a bit in the final hour of trading, leaving the major averages a ways above their worst marks of the day; at their session lows, the S&P 500, the Nasdaq, and the Dow held losses between 2.0% and 2.3%. The small-cap Russell 2000 showed relative strength on Thursday, losing just 0.3%.

In Washington, Fed Chairman Jerome Powell wrapped up his first semiannual monetary policy testimony on Thursday with an appearance before the Senate Banking Committee, but he didn't really provide investors with any new information. The market still projects three rate hikes for 2018, but a fourth hike is certainly on the table; according to the CME FedWatch Tool, the chances of a fourth hike currently sit at 28.1%, down slightly from 31.9% on Wednesday.

The U.S. Treasury market recorded its second consecutive day of gains on Thursday, pushing yields lower across the curve. The yield on the benchmark 10-yr note dropped seven basis points to 2.80%, which puts it 15 basis points below the four-year high it touched last week. Meanwhile, the 2-yr yield dropped six basis points to 2.20%.

In currencies, the U.S. Dollar Index retreated from a six-week high, dropping 0.4% to 90.22.

Reviewing Thursday's economic data, which included Personal Income and Spending for January, the PCE Price Index and the core PCE Price Index for January, weekly Initial Claims, the ISM Index for February, and Construction Spending for January:

Personal income climbed 0.4% in January (Briefing.com consensus +0.3%) following an unrevised increase of 0.4% in December. Meanwhile, personal spending rose 0.2% in January (Briefing.com consensus +0.2%) following an unrevised increase of 0.4% in December.
The PCE Price Index increased 0.4% in January (Briefing.com consensus +0.4%), while the core PCE Price Index, which excludes food and energy, increased 0.3% (Briefing.com consensus +0.3%). Year-over-year, the core PCE Price Index is up 1.5%, unchanged from the last two readings.
The key takeaway from the report is that it won't shift the prevailing perspective that the Fed is expected to raise the fed funds rate at least three times this year.
The latest weekly initial jobless claims count totaled 210,000, while the Briefing.com consensus expected a reading of 227,000. Today's tally was below the revised prior week count of 220,000 (from 222,000). As for continuing claims, they rose to 1.931 million from a revised count of 1.874 million (from 1.875 million).
The trend in initial claims, which held below 300,000 for the 156th straight week, will support the Fed's thinking that tight labor markets should ultimately invite a pickup in wage inflation.
The ISM Index for February climbed to 60.8 from an unrevised reading of 59.1 in January, while the Briefing.com consensus expected a reading of 58.4.
The key takeaway is that the Prices Index hit its highest level since May 2011. That will feed into fears about manufacturers passing through higher input costs to their customers, which will buttress inflation expectations.
Construction Spending was flat in January (0.0%), while the Briefing.com consensus expected an increase of 0.3%. The prior month's increase was raised to 0.8% from 0.7%.
The key takeaway from the report is that construction spending growth continues to run at a relatively slow pace, which is an inhibitor of stronger overall growth.

On Friday, investors will receive the final reading of the University of Michigan Consumer Sentiment Index for February (Briefing.com consensus 99.5) at 10:00 AM ET.

Nasdaq Composite: +4.0% YTD
S&P 500: +0.2% YTD
Dow Jones Industrial Average: -0.5% YTD
Russell 2000: -1.8% YTD

Dow: -420.22… | Nasdaq: -92.45… | S&P: -36.16…
NASDAQ Adv/Dec 1212/1724. …NYSE Adv/Dec 1186/1754.

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.

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The Strategy Lab: Valforex - The Manipulative Review Scam @ http://www.thestrategylab.com/tsl/forum/viewtopic.php?f=84&t=3676

TheStrategyLab Review @ http://www.thestrategylab.com/thestrategylab-reviews.htm

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