Market Perspective for February 10, 2020

The Nasdaq rallied 1.13 percent on Monday due to strong earnings news and Friday’s strong jobs number. The S&P 500 Index increased 0.73 percent and the Dow Jones Industrial Average 0.60 percent.

Technology extended its winning streak. SPDR Technology (XLK) climbed 1.35 percent. SPDR Consumer Discretionary (XLY) added 1.13 percent as top component Amazon (AMZN) gained 2.63 percent and a new all-time high. SPDR Communication Services (XLC) rose 0.59 percent.

Economic data will be light this week. On Tuesday, the National Federation of Independent Business will release its small-business confidence index for December. The Job Openings & Labor Turnover Survey (JOLTS) for December will also be released tomorrow.

January consumer inflation will be out on Thursday. Economists forecast an increase of 0.2 percent, same as December.

January retail sales will be released Friday. Analysts expect both the total sales and ex-autos number to have increased 0.3 percent for the month.

The U.S. Dollar Index extended its streak as well on Monday, rising 0.17 percent. iShares MSCI Emerging Markets (EEM) gained 0.62 percent and iShares MSCI EAFE (EFA) added 0.20 percent.

Crude oil fell below $50 per barrel on Monday, losing 1.27 percent. SPDR Energy (XLE) was one of the few sector funds down on the day. It fell 0.48 percent.

Bonds rallied across the board as strong economic data lowered credit risk. iShares Fidelity Corporate Bond (FCOR) gained 0.15 percent, iShares iBoxx High Yield Corporate Bond (HYG) 0.14 percent and Invesco Senior Loan (BKLN) 0.11 percent.

Lyft (LYFT), Under Armour (UA), Hasbro (HAS) and Akamai (AKAM), Hilton Worldwide (HLT), Dominion Energy (DE), Western Union (WU) and Goodyear Tire & Rubber (GT) will all report earnings on Tuesday.

Cisco (CSCO), Shopify (SHOP), CVS Health (CVS), Applied Materials (AMAT), CME Group (CME), MGM Resorts (MGM), Moody’s (MCO) and Welltower (WELL) deliver results on Wednesday.

Thursday brings earnings from Alibaba (BABA), Nvidia (NVDA), Roku (ROKU), Duke Energy (DUK), Zoetis (ZTS) and Expedia (EXPE).

The week closes out with Enbridge (ENB), Canopy Growth (CGC), PPL Corp (PPL), AstraZeneca (AZN), Yandex (YNDX) and Newell Brands (NWL).

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