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Stock Market Outlook for March 16, 2018

Strong regional surveys bode well for the seasonal uptick in manufacturing activity through the spring.

 

Real Time Economic Calendar provided by Investing.com.

 

*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.   As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.

Stocks Entering Period of Seasonal Strength Today:

China Eastern Airlines (NYSE:CEA) Seasonal Chart

China Eastern Airlines (NYSE:CEA) Seasonal Chart

Schnitzer Steel Industries, Inc. (NASD:SCHN) Seasonal Chart

Schnitzer Steel Industries, Inc. (NASD:SCHN) Seasonal Chart

WNS Holdings Ltd. (NYSE:WNS) Seasonal Chart

WNS Holdings Ltd. (NYSE:WNS) Seasonal Chart

Commercial Vehicle Group Inc. (NASD:CVGI) Seasonal Chart

Commercial Vehicle Group Inc. (NASD:CVGI) Seasonal Chart

Sonic Automotive, Inc. (NYSE:SAH) Seasonal Chart

Sonic Automotive, Inc. (NYSE:SAH) Seasonal Chart

Worthington Industries, Inc. (NYSE:WOR) Seasonal Chart

Worthington Industries, Inc. (NYSE:WOR) Seasonal Chart

Telephone & Data Systems, Inc.  (NYSE:TDS) Seasonal Chart

Telephone & Data Systems, Inc. (NYSE:TDS) Seasonal Chart

Sabine Royalty Trust (NYSE:SBR) Seasonal Chart

Sabine Royalty Trust (NYSE:SBR) Seasonal Chart

Reitmans (Canada) Ltd. (TSE:RET.TO) Seasonal Chart

Reitmans (Canada) Ltd. (TSE:RET.TO) Seasonal Chart

Alaris Royalty (TSE:AD) Seasonal Chart

Alaris Royalty (TSE:AD) Seasonal Chart

AZZ, Inc. (NYSE:AZZ) Seasonal Chart

AZZ, Inc. (NYSE:AZZ) Seasonal Chart

 

 

The Markets

Stocks closed fairly mixed on Thursday as trade war fears persist.  The S&P 500 Index shed just less than one-tenth of one percent, continuing to hold gap support in the range of 2740 to 2750.  Consumer staples and materials acted as the heaviest weights on broad market performance during the session.

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On the economic front, regional surveys from Philadelphia and New York suggest a strong season for the manufacturing economy.  The headline print of the Philadelphia Fed Business Outlook Survey indicates that conditions remained robust in March at +22.3, marginally below the consensus estimate of +23.0.  The Empire Manufacturing Survey showed a similar result at +22.5, well above the consensus analyst estimate of +15.0.  Stripping out the seasonal adjustments, the Philadelphia and New York surveys posted +40.6 and +39.9, respectively; the average read for each at this time of year is +25.4 and +22.4.  In the case of New York, this is the best March read on the state of the manufacturing economy since 2006.  The results bode well for the strong seasonal uptick in manufacturing activity this spring, which historically gives lift to a a wide array of cyclically sensitive sectors of the equity market.  Concerns pertaining to a trade war are obviously dampening this year’s equity market performance.  We’ll see if these upbeat sentiment surveys translate into strength in actual activity when the government’s report on industrial production is released on Friday.

Philadelphia Manufacturing Business Outlook Survey Seasonal Chart

Empire State General Business Conditions Index Seasonal Chart

Sentiment on Thursday, as gauged by the put-call ratio, ended bullish at 0.89.

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Sectors and Industries entering their period of seasonal strength:

British Pound Forex (GBP) Seasonality

Monthly Seasonal British Pound Forex (GBP)

 

 

Seasonal charts of companies reporting earnings today:

A10 Networks, Inc. (ATEN) Seasonal Chart Buckle, Inc. (The) (BKE) Seasonal Chart Citi Trends, Inc. (CTRN) Seasonal Chart  Geron Corporation (GERN) Seasonal Chart Hibbett Sports, Inc. (HIBB) Seasonal Chart Kirkland's, Inc. (KIRK) Seasonal Chart Perry Ellis International Inc. (PERY) Seasonal Chart Tiffany & Co. (TIF) Seasonal Chart 

 

 

S&P 500 Index

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TSE Composite

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