Stock Market Summary - Week Ending February 15, 2019

Despite mixed economic data, stocks continued their rally last week boosted by optimism that another government shutdown may have been averted and trade talks with China will continue. The Dow Jones Industrial Average (DJIA) surged 776.92 points or 3.09% to close the week at 25,883.25, while the S&P 500 (SPX) had a boost of 67.72 points or 2.50% to close at 2,775.60. The Russell 2000 (RUT) added 62.86 points for a 4.17% gain to close at 1,569.25, and the Nasdaq (COMP) soared 174.21 points or 2.39% to finish at 7,472.41. The S&P 100 (OEX) gained 27.80 points for a 2.34% increase to close at 1,217.96, and the VIX fell -5.15% to 14.91 at market close Friday. 

Corporate Gainers 

SPX Corp (SPXC)surged 17.27% after beating consensus estimations for quarterly earnings-per-share by $0.09 at $0.89. This is also more than 20 cents per share compared to the same quarter a year ago. 

Arista Networks Inc (ANET) soared 16.62% overall last week, fueled by strong 4th quarter 2018 earnings that revealed growth in both the top and bottom lines that surpassed analysts' expectations. 

Radian Group Inc (RDN)gained 7.52% after the specialty insurance company posted 4th quarter earnings that beat estimates by slightly more than 6%. The company's bottom line was also higher year-over-year. 

Corporate Sliders 

Newell Brands Inc (NWL) tumbled -16.66% last week following mixed 4th quarter 2018 earnings reported on Monday. While the bottom line exceeded expectations, the top line didn't. The subsequent downward guidance adjustment for the remainder of the year further drove the stock price downward. 

After a week of strong stock price performance, shares of Mattel Inc (MAT) plunged -18.27% on Friday, bringing the week's overall results to a drop of -9.26%. The Friday plunge followed an announcement during an analyst meeting that the toy manufacturer would be downgrading its forecast for 2019 due to a reported slowing of demand for its Barbie doll. Analysts and investors alike expressed concern that the action seemed bizarre in light of the company's positive comments in the prior week regarding strong demand for Barbie. 

Analysts warned investors last week to watch Dish Network Corporation (DISH) closely due to observed activity in the options market in recent days. This is due to the February 15, 2019 $25 Put having some of the highest implied volatility observed across all equity markets. The satellite TV service stock price fell -2.03% overall for the week. 

Economic Indicators of Note 

The Consumer Price Index (CPI) for January shows consistently flat consumer prices with unchanged overall prices for the third consecutive month. 

Crude oil inventories reflect a continuing softening demand for energy with supplies up 3.6 million barrels in the February 8 week to 450.8 million. Gasoline supplies are up 0.4 million barrels to 258.3 million and distillates up 1.2 million barrels to 140.2 million. Oil prices remained steady after release of the report at $54.25. 

Producer Prices (PPI-FD) for January dropped 0.1% for the second straight month. With accompanying stability in consumer prices, inflation is remaining in check. 

Retail Sales for December slowed by -1.2% indicative of the sharpest decline since the onset of the expansion. Vehicle sales, which are not normally a strong factor in December readings actually boosted the indicator. When excluding vehicle sales, Retail Sales fell 1.8%. 

Initial Jobless Claims for the February 9 week increasd by 4,000 to 239,000 while continuing claims in lagging data for the February 2 week grew by 37,000. 

Industrial Production slipped -0.06% in January, falling below analysts' lowest estimate. 

Upcoming Economic Events 
Market Movers: 
FOMC Minutes-Wednesday @ 2:00 p.m. ET 
Durable Goods Orders-Thursday @ 8:30 a.m. ET 
Jobless Claims-Thursday @ 8:30 a.m. ET 
Philadelphia Fed Bus Outlook-Thursday @ 8:30 a.m. ET 
Existing Home Sales-Thursday @ 10:00 a.m. ET 
EIA Petroleum Status Report-Thursday @ 11:00 a.m. ET 

Events Worth Noting 
Housing Market Index-Tuesday @ 10:00 a.m. ET 
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 2/15/2019 
DJIA 25883.25 (Dow Jones) 
SPX 2775.60 (S&P 500) 
RUT 1569.25 (Russell 2000) 
COMP 7472.41 (Nasdaq) 
OEX 1217.96 (S&P 100) 
VIX 14.91 (CBOE)