Daily Markets: Earnings to Pick Up Velocity This Week

Daily Markets: Earnings to Pick Up Velocity This Week

Last Friday stocks gave back all their earlier gains to leave the major US equity indices lower on the day. The major indices took a hit on Friday in response to the December Employment Report from the Bureau of Labor Statistics that showed nonfarm payrolls rose just 145k in December, well below expectations for 160k with an additional 14k downward revision to the prior two months. Aside from the miss relative to expectations, what we find even more concerning is the retail sector reportedly added 41k new employees for the holiday season, which disappointed outside of online sales. We’ll be looking closely for such a reversal in that category inside the January Employment Report.

For the first full week of trading in 2020, the Nasdaq 100 gained 2%, followed by the Nasdaq Composite’s gain of 1.8% and the S&P 500’s 1% move. Although the major equity indices all closed in the red last Friday, the Dow Jones Industrial Average managed to briefly make a new intraday high, breaking through 29,000. If the Dow can manage to hold that level today, it will be the third new thousand-level mark since the start of 2019. 

From an economic data and earnings report perspective, today is poised to be a quiet one, however, …

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About the Author

Lenore Hawkins & Chris Versace
Lenore Hawkins serves as the Chief Macro Strategist for Tematica Research. With over 20 years of experience in finance, strategic planning, risk management, asset valuation and operations optimization, her focus is primarily on macroeconomic influences and identification of those long-term themes that create investing headwinds or tailwinds. Chris Versace is Tematica's Chief Investment Officer and editor of Tematica Investing newsletter. All of that capitalizes on his near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks.

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