Stock Market Summary - Week Ending February 1, 2019
January of 2019 closed on a positive note with stocks continuing to gain overall and with the S&P 500 performing in its best month since 1987. Strong earnings reports combined with the FOMC taking a step back from any hints of a rate hike in the foreseeable future served to boost investor confidence.
The Dow Jones Industrial Average (DJIA) closed the week 326.69 points higher for a 1.32% gain at 25,063.89 while the S&P 500 (SPX) rose 41.77 points to close the week at 2,706.53 for a gain of 1.57%. The Russell 2000 (RUT) added 19.20 points or 1.29% to finish the week at 1,502.05 and the Nasdaq (COMP) gained 99.01 points or 1.38% to finish at 7,263.87. The S&P 100 (OEX) increased 15.56 points for a 1.32% increase to close at 1,191.67 and the VIX fell -7.35% to close at 16.14.
Corporate Gainers
Symantec Corp (SYMC) soared 12.41% overall for the week after reporting earnings for its fiscal 3rd quarter 2019 that surpassed analysts' estimates by 5 cents. The stock was trading at $22.91 per share at market close on Friday.
Zimmer Biomet Holdings Inc (ZBH) surged 8.56%, trading at $116.60 per share at Friday's close. The medical device company reported strong earnings for its 4th quarter fiscal 2018 on the heels of FDA approval of the company's new knee replacement system.
Aon PLC (AON) increased 8.47 after posting adjusted earnings-per-share of $2.14 for its 4th quarter 2018, trading at $167.46 per share at market close Friday. The company is an insurance brokerage firm trading in the finance sector of the S&P 500.
Corporate Sliders
Westrock Co (WRK) tumbled -8.49% last week overall, trading at $38.70 per share at market close on Friday. The producer of paper and packaging products posted 1st quarter earnings that were sharply down from the prior quarter.
Kohls Corp (KSS) dropped -5.67%, trading at $66.69 Friday at market close. The retailer reported a slowing of sales growth from the holiday season of 2018 yet raised its outlook for the coming year.
Amazon.com Inc (AMZN) slumped -2.65%, trading at $1,626.23 per share at market close despite posting strong earnings for its 4th quarter 2018. The drop is attributed to the online retail giant's lower-than-expected guidance going forward.
Economic Indicators of Note
International Trade in Goods for November and December have been delayed. There is no consensus at this time.
GDP is delayed for q4(a) of 2018 due to partial government shutdown. The consensus is for 2.3% to 2.9% range for real GDP quarter to quarter change.
Crude oil supplies were up 0.9 million to 445.9 million in the January 25 week. Supplies of gasoline were down by 2.2 million to 257.4 million and distillates were down 1.1 million to 141.3 million.
Initial jobless claims shot up 53,000 in the January 26 week to 253,000 with a small portion attributable to furloughed Federal employees. Continuing claimsin lagging data for the January 19 week increased a sharp 69,000. The four-week average is 8,000 higher at 1.738 million. The unemployment rate rose 0.1 to 4.0.
The Personal Income and Outlays report has been delayed. Analysts expect a moderate 0.3% rise.
New Home Sales surged 16.9% in November to an annualized rate of 657,000.
The ISM Mfg Index for January reflects solid growth that accelerated from December's soft reading. The index grew 2.3 points to 56.6
Upcoming Economic Events
Market Movers:
International Trade - Wednesday @ 8:30 am ET
EIA Petroleum Status Report- Wednesday @ 10:30 am ET
Jerome Powell speaks -Wednesday @ 7:00 pm ET
Jobless Claims -Thursday @ 8:30 am ET
Events Worth Noting
Factory Orders - Monday @ 10:00 am ET
ISM Non-Mfg Index - Tuesday @ 10:00 am ET
Productivity and Costs - Wednesday @ 8:30 am
EIA Natural Gas Report - Thursday @ 10:30 am
Fed Balance Sheet - Thursday @ 4:30 pm
Index Trading Levels For Week Ending 2/01/2019
DJIA 25063.89 (Dow Jones)
SPX 2706.53 (S&P 500)
RUT 1502.05 (Russell 2000)
COMP 7263.87 (Nasdaq)
OEX 1191.67 (S&P 100)
VIX 16.14 (CBOE)