Stock Market Outlook for February 13, 2019
S&P 500 Index revealing a new pivot point around 2720.
*** 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:
Keyera Corp (TSE:KEY.TO) Seasonal Chart
Genpact Ltd. (NYSE:G) Seasonal Chart
AbbVie Inc. (NYSE:ABBV) Seasonal Chart
Quanta Services, Inc. (NYSE:PWR) Seasonal Chart
The Markets
Stocks pushed higher on Tuesday amidst optimism that a funding deal has been achieved to keep the US government open past the February 15th deadline. The deal in principle negotiated between Republicans and Democrats did not include border wall funding, a requirement imposed by President Donald Trump. The S&P 500 Index closed the session higher by 1.29%, ending just marginally above its 200-day moving average. Investors bought into discretionary, financial, industrial, and material stocks in what amounted to a risk-on session. The large-cap benchmark is revealing a new pivot point around 2720, a level that the benchmark has gapped around three times in just the present month. The level presents a point of support when above this zone and conversely a level of resistance when below. For now, stocks are afloat above this zone unless a catalyst were to be realized that knocks the benchmark below.
On the economic front, the report on Job Openings and Labor Turnover indicated that opportunities in the economy increased in the final month of 2018. The headline print indicated that job openings increased to 7.335 million in December from a previously revised 7.116 million in November. The consensus estimate was for 6.90 million. Stripping out the seasonal adjustments, job openings actually increased by 0.7% to 6.89 million, diverging from seasonal norms that call for a decline in openings of 2.8% in the last month of the year. The result brings the 2018 change to +31.9%, the best calendar year growth in the history of this report. To receive further analysis regarding this report and other important indicators of economic activity, subscribe to Equity Clock and we’ll breakdown the numbers beyond what is revealed in the headlines. Subscriptions also include access to the seasonal chart database, which has over 7000 seasonal profiles of every listed company in the US and Canada with at least five years of data associated with them.
Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.78. Once again, investor sentiment is bordering on complacency following the substantial rally from the December low.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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