Month: February 2019

The Nasdaq rose 1.15 percent on Monday. Technology stocks pushed the broader market higher, with Apple (AAPL) and Microsoft (MSFT) both gaining more than 2 percent. SPDR Technology (XLK) advanced 1.60 percent.

SPDR Industrials (XLI) gained 1.29 percent with strength from Boeing (BA) and defense stocks. iShares US Aerospace & Defense (ITA) climbed 2.08 percent.

Google (GOOG) beat analyst earnings estimates, coming in at $12.77 versus an expected $10.86. The company also beat revenue forecasts. However, shares fell in after-hours trading. Rising costs held operating income to $8.2 billion, below an expected $8.6 billion. Capital investments doubled as well.

Gilead Sciences (GILD) slipped 3 percent after the company said profit was below analyst estimates. Emerson Electric (EME) beat earnings forecasts, though its shares also fell.

Reports today include Disney (DIS), Estee Lauder (EL), Anadarko Petroleum (APC), Becton Dickinson (BDX) Microchip Technology (MCHP), Electronic Arts (EA) and Lumentum (LITE). Lumentum is an Apple supplier and delivers early signals on Apple’s business. This past November Lumentum caused a drop in Apple shares when it warned on profits. Apple lowered its earnings guidance in early January.

On Wednesday, Eli Lilly (LLY), NXP Semiconductors (NXPI), Humana (HUM), General Motors (GM), Chipotle Mexican Grill (CMG), Metlife (MET) and Twenty-First Century Fox (FOXA) report.

Fiserv (FISV), Intercontinental Exchange (ICE), Expedia (EXPE) and Cardinal Health (CAH) will issue reports on Thursday.

The U.S. Dollar Index rose on Monday. Crude oil fell 1 percent, while natural gas slipped 2.5 percent. SPDR Energy (XLE) returned 0.23 percent.

iShares MSCI Emerging Markets (EEM) saw a small gain of 0.16 percent to start the week.

Stocks extended their rally this week, with the S&P 500 Index increasing 1.52 percent. The S&P 500 gained 7.97 percent in January, making it the best January since 1987 and the best single-month performance since March 2016. Energy, communication services, industrials and healthcare sectors issued strong earnings reports.

Apple (AAPL) and Facebook (FB) delivered positive earnings and contributed to the broad market rally, as did energy giants Chevron (CVX) and Exxon Mobil (XOM). Apple, Facebook, Chevron and Exxon gained 5.57, 11.21, 4.55 and 5.83 percent, respectively. Amazon (AMZN) disappointed, losing 2.62 percent on the week after it lowered forward guidance.

The Federal Reserve held rates steady this week, but surprised investors when it backed off its rate hike projections and said it may slow the pace of balance sheet reductions.

Employers added 304,000 new hires in January. Unemployment also ticked up to 4.0 percent, as previously discouraged workers are now seeking employment.

Economic reports delayed by the government shutdown will soon be released. November new home sales exceeded expectations with an annualized sales pace of 657,000, well above the forecast of 563,000. January auto sales also beat expectations with preliminary data showing a 1.3 percent increase over last year. The University of Michigan consumer sentiment index finished up from its advance reading in early January.

Manufacturing PMIs show the U.S. manufacturing sector improving in January. The ISM reading was 56.6 percent. In contrast, China’s PMI fell to 48.3, indicating a retraction.

Crude oil finished the week at $55.26 per barrel, its highest price since mid-November. Natural gas fell to $2.73 per mmBTU this week, its lowest level since September. SPDR Energy (XLE) rose 3.10 percent on the week.