Market Perspective for August 17, 2020

The Nasdaq gained 1.00 percent on Monday, the Russell 2000 Index 0.48 percent and the S&P 500 Index 0.27 percent. The Dow Jones Industrial Average fell 0.31 percent.

SPDR Consumer Discretionary (XLY) gained 1.29 percent on the day. SPDR Real Estate (XLRE) advanced 0.89 percent, SPDR Technology (XLK) 0.67 percent and SPDR Healthcare (XLV) 0.59 percent.

The National Association of Homebuilders said its home builders’ confidence index hit its former all-time high of 78 in August. More housing data is coming on Tuesday with housing starts and building permits for July.  Analysts project increases in both from June levels. Existing home sales are out on Friday.

The minutes from the July FOMC meeting will be out on Wednesday. Economists project initial claims fell to 910,000 last week. The flash August PMIs for world economies will be out on Friday. Both surveys are expected to show expansion in July.

Bond yields dipped on Monday with the 10-year Treasury yield closing to 0.68 percent. Crude oil rose slightly to $42.81 per barrel. Natural gas fell 2 cents to $2.34 per mmBTU.

Retail earnings season kicks off in earnest on Tuesday with Wal-Mart (WMT), Home Depot (HD), Kohl’s (KSS) and Advance Auto Parts (AAP) headlining, along with Spectra Energy (SE), Agilent (A) and Cree Inc. (CREE).

On Wednesday, Lowes (LOW), Target (TGT), TJX Companies (TJX) and L Brands (L) dominate retail reports. Nvidia (NVDA) and Analog Devices (ADI) also deliver results.

Alibaba (BABA), Ross Stores (RSOT), Estee Lauder (EL), Gold Fields (GFI), Keysight Technologies (KEYS), BJ’s Wholesale Club (BJ) and The Toro Company (TTC) report on Thursday.

Deere & Co. (DE), Foot Locker (FL) and Pinduoduo (PDD) close out the week.


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