What a week! – Here’s what traders are focusing on right now…

Stock Market Update Sunday, February 9th, 2020

What a week!

Stocks were up nicely Monday, rallying after a strong open. 

Then on Tuesday, the S&P gapped higher and rallied again. And by the close, the S&P had erased the previous week’s losses.

An unconfirmed coronavirus breakthrough and better than expected ISM Non-Manufacturing PMI data helped stocks rally on Wednesday. And with a push higher in the last hour of trading, the S&P and NASDAQ made new record highs.

On Thursday, stocks were off to the races again, and it looked like this week’s monster rally just couldn’t be stopped.

The S&P, DOW, and NASDAQ all made new record highs on Thursday after China announced that they are cutting tariffs in half on $75 billion in U.S. goods (a move planned with the Phase One deal).

But on Friday, stocks dropped.

Friday’s Jobs Report was better than expected, with the U.S. economy adding 225,000 jobs last month. 

And in the morning, President Trump praised President Xi of China for his efforts to control the coronavirus. Trump tweeted …”had a very good conversation with President Xi of China. He is strong, sharp, and powerfully focused on leading the counterattack on the Coronavirus. He feels they are doing very well, even building hospitals in a matter of only days.”

But after 4 winning days and a march to record highs, a pullback was in order. Especially with ongoing coronavirus concerns.

Although stocks dropped on Friday, the S&P still managed to have its best week since June.

Here’s what traders are focused on:

  • Earnings – As of Friday, 64% of the S&P 500 companies have reported Q4 earnings. And according to FactSet, 71% of the companies that have reported earnings have reported better than expected numbers.
  • Jobs – On Friday, the Jobs Report was released and Average Hourly Earnings rose by 0.2% (vs. a 0.3% forecast), 225,000 Non-Farm Jobs were added (vs. 163,000 forecast), and the Unemployment Rate was up a tick to 3.6% (vs. a 3.5% forecast).
  • Coronavirus – Traders shook off coronavirus concerns for most of the week. But on Friday, China confirmed 31,131 cases and 636 deaths in the country. With reports that get worse and confirmation that the virus continues to spread globally, coronavirus will remain an issue. And its uncertain just how much it will impact the global economy.

Here’s where the major indices ended the week:

  • The S&P finished with a 3.2% gain. Up 102 points, the S&P ended at 3,328.
  • The DOW ended higher by 3.0%. Adding 846 points, the DOW closed at 29,103.
  • The NASDAQ was up 4.1%. With a 372 point gain, the NASDAQ finished at 9,522.

Crude Oil (CL) dropped for the 5th week straight. Down 2.3%, CL ended the day at $50.39 a barrel.

Tesla (TSLA) had one of its craziest weeks ever! After rallying towards $1,000 a share and being up as much as 48% in ONE week, Tesla finished the week with a 15.0% gain.

Uber (UBER) jumped to 6-month highs after better than expected earnings. The stock closed Friday with a 9.5% gain.

And FedEx (FDX) was an earnings winner as well. Up 4.7% on Friday.

This week the coronavirus will continue to be in the spotlight. We’ll also hear from Fed Chair Powell with is testimony before the House Financial Services Committee and Senate Banking Committee.

Here is the economic calendar for the week:

Real Time Economic Calendar provided by Investing.com.

This Stock Market Update was provided by Rockwell Trading Services LLC.

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