Stock Market Summary - Week Ending January 18, 2019

Stocks gained for the fourth week in a row as positive corporate earnings and news that China may be willing to take steps to reduce its trade surplus with the U.S. was welcomed by investors. The Dow Jones Industrial Average (DJIA) soared 710.40 points overall for a 2.96% gain to close the week at 24,706.35 while the S&P 500 (SPX) increased 74.45 points to close at 2,670.71, a gain of 2.87%. The Russell 2000 (RUT) closed the week 35.12 points higher for a 2.43% rise to 1,482.50 and the Nasdaq (COMP) surpassed the 7,000 mark again by surging 185.75 points for a 2.66% rise to close the week at 7,157.23. The S&P 100 (OEX) added 32.20 points or 2.80% to close the week at 1,181.55 and the VIX dropped -0.39 or -2.14% to 17.80 at market close on Friday. 

Corporate Gainers 

Shares of Attunity Ltd gained steadily throughout the week yet dropped more than -2% on Friday. The Friday drop was not enough to wipe out the gains, however, and the software services company managed to soar 21.09% overall for the week with a high volume of trading on Thursday. 

VF Corp (VFC) surged 15.23% overall for the week after posting robust earnings for the 3rd quarter fiscal 2019. The top and bottom lines both exceeded analysts' expectations for the apparel merchandiser. 

Edwards Lifesciences Corp (EW) gained 10.22% last week as investors reacted favorably to news that the company, a leader in heart valve replacement systems, has agreed to pay competitor Boston Scientific Corp (BSX)$180 million to settle a patent dispute. 

Corporate Sliders 

Signet Jewelers Ltd (SIG) plummeted -28.52% after the company reported weak holiday sales for the 2018 season. The news was accompanied by indications that the company plans to close additional stores in the coming months. 

Electroics For Imaging Inc (EFII) plunged -9.34% last week after the tech imaging company cut its guidance for the quarter based upon reduced capital expenditures for the quarter. 

Atlassian Corp (TEAM) an information technology company based in London tumbled -5.21% despite posting positive earnings and upbeat revenue for its fiscal 2nd quarter. Possible causes for the drop were not disclosed but high trading volume was noted. 

Economic Indicators of Note 

Producer Prices for December fell -0.2% largely due to the decline in oil prices. Core producer prices dropped -0.1%. 

Crude oil supplies dropped by -2.7 million barrels in the January 11 week to 437.1 million. Gasoline supplies were up by 7.5 million barrels to 255.6 million and distillates increased by 3.0 million barrels to 143.0 million. 

Initial jobless claims fell by 3,000 to 213,000 in the January 12 week while continuing claims for the January 5 week grew by 18,000 bringing the four-week average to 1.729 million. 

Despite a slowing in the factory sector during the latter part of 2018, the Philadelphia Fed Business Outlook Survey for January shows a definite acceleration trend for the beginning of 2019. The general conditions index is up by nearly 8 points to 17.0. 

Industrial Production for December surpassed expectations for manufacturing mostly due to a surge in motor vehicle production, construction supplies, and business equipment. Manufacturing month-to-month grew 1.1% while overall production rose 0.3%. 

Upcoming Economic Events 
Market Movers: 
Markets Closed - Holiday-Monday 
Existing Home Sales-Tuesday @ 10:00 a.m. ET 
Jobless Claims-Thursday @ 8:30 a.m. ET 
EIA Petroleum Status Report-Thursday @ 11:00 a.m. ET 
Durable Goods Orders-Friday @ 8:30 a.m. ET 
New Home Sales-Friday @ 10:00 a.m. ET 

Events Worth Noting 
Markets Closed - Holiday-Monday 
EIA Natural Gas Report-Thursday @ 10:30 a.m. ET 
Fed Balance Sheet-Thursday @ 4:30 p.m. ET 

Index Trading Levels For Week Ending 1/18/2019 
DJIA 24706.35 (Dow Jones) 
SPX 2670.71 (S&P 500) 
RUT 1482.50 (Russell 2000) 
COMP 7157.23 (Nasdaq) 
OEX 1181.55 (S&P 100) 
VIX 17.80 (CBOE)