Stock Market Watch for the Week of February 4th
Stocks closed the month of January strong, as it had its best start to the year since 1987. It all happened while the government was mostly shut down, and trade talks between China still ongoing.
That said, comments out of the Federal Reserve Bank, have been the main driver for the rally in the stock market. On January 30, the FOMC decided to leave interest rates untouched. Also, they removed references of further gradual rate increases, as they plan to continue with current floor approach.
In other words, the Fed is doing its best to please the markets. That said, the focus for the coming week is the State of the Union Address, earnings, and more earnings. We’ll be getting quarterly results from Alphabet, Disney, Electronic Arts, and GM.
So far, earnings have been mixed. For example, Amazon, Nvidia, and Apple have guided lower, while oil companies like Exxon and Chevron are starting to break out towards the upside.
That said, volatility has come in a lot since December 24, when the VIX traded above 36. However, it closed at 16.16 on Friday, a sign that traders are becoming complacent once again.
Source: Yahoo
Here are how some of the most actively traded index ETFs performed over the week: SPDR S&P 500 ETF (SPY) +1.61%, iShares Russell 2000 ETF (IWM) +1.25%, SPDR Dow Jones Industrial Average ETF (DIA) +1.25%, Invesco QQQ Trust (QQQ) +1.39%
Here are how some of the most actively traded commodity and interest rate ETFs performed: United States Oil Fund (USO) +3.38%, iShares 20+ Year Treasury Bond (TLT) +0.36%, SPDR Gold Shares (GLD) +1.33%
Economic Releases:
5 Feb 2019- State of the Union Address 9PM ET
6 Feb 2019- International Trade 8:30 AM ET; EIA Petroleum Status Report 10:30 AM ET
7 Feb 2019- Jobless Claims 8:30 AM ET
Key Earnings:
4 Feb 2019- GOOGL, STX, WSM, GILD, ON, CLX, SYY, ALXN
5 Feb 2019- ADM, EL, EMR, ENR, HUBB, LAZ, RL, VIAB, WCG, WDR, APC, CERN, DATA, DIS, EA, GNW, MCHP, PAA, PAYC, SFLY, SKY, SNAP, SWKS, ULTI, VOYA, ZEN, VRTX
6 Feb 2019- BSX, GM, HUM, LLY, REGN, TTWO, WD, CMG, ELY, FEYE, GPRO, HIVE, IRBT, NEWR, MET, ORLY, PRU, ZNGA, WERN, VVV
7 Feb 2019- ADNT, AMAG, CAH, DNKN, EIGI, GRUB, HAIN, K, LEE, LH, PENN, TWTR, WWE, YUM, ANGI, EXPE, FISV, G, HUBG, IAC, MAT, NCR, QRVO, VRSN, VRTU
8 Feb 2019- ARNC, CBOE, CLF, COTY, EXC, PSX, RDN
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