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Stocks close little changed, preserve weekly gains
14-Feb-20 16:10 ET
Dow -25.23 at 29397.99, Nasdaq +19.21 at 9731.20, S&P +6.22 at 3380.16

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The stock market wavered between modest gains and losses on Friday, ultimately closing little changed to preserve the week's solid gains. The S&P 500 (+0.2%) and Nasdaq Composite (+0.2%) eked out small gains, while the Dow Jones Industrial Average (-0.1%) and Russell 2000 (-0.4%) edged lower.

There was little conviction among investors ahead of the three-day weekend, and the mostly in-line economic data released today didn't generate much buzz. Retail sales increased 0.3% m/m in January, as expected, continuing a trend of modest discretionary spending.

Investors did lean defensively, though, evidenced by the gains in the Treasury market and the leadership from the S&P 500 real estate (+1.1%) and utilities (+0.7%) sectors. The defensive posture could have been attributed to some precaution in front of the long weekend considering that the market is sitting on handsome gains this month despite the coronavirus.

Cyclical sectors showed relative weakness with the energy sector (-0.8%) declining the most today.

NVIDIA (NVDA 289.79, +19.01, +7.0%) and Expedia Group (EXPE 122.80, +12.21, +11.0%) stood out with huge gains after reporting solid earnings results. Roku (ROKU 130.25, -8.80, -6.3%) was up as much as 8.7% following its results, but shares sold off and closed lower by 6.3%.

Separately, the White House is considering tax incentives for middle-class Americans to purchase stocks, according to CNBC. The package could be unveiled in early fall prior to the presidential election.

U.S. Treasuries, as previously stated, had a good session, driving yields lower across the curve. The 2-yr yield declined five basis points to 1.42%, and the 10-yr yield declined three basis points to 1.58%. The U.S. Dollar Index increased 0.1% to 99.12. WTI crude rose 1.0%, or $0.53, to $51.93/bbl.

Reviewing Friday's economic data, which featured the Retail Sales report for January:

Total retail sales increased 0.3% m/m in January, as did retail sales, excluding autos. Both were in-line with expectations. There were slight downward revisions to the December data.
The key takeaway from the report is that discretionary spending was modest in January, which will contribute to a sense that Q1 GDP growth was apt to be modest even without any impact from the coronavirus.
Import prices were flat month-over-month in January and were up 0.2% excluding fuel. Export prices were up 0.7%, which was also the case excluding agricultural products. On a year-over-year basis, import prices were up 0.3%, and down 0.9% excluding fuel. Export prices were up 0.5%, and up only 0.2% excluding agricultural products.
The key takeaway from the report is that there were no inflation alarm bells in it for the Federal Reserve.
Industrial production declined 0.3% m/m in January, as expected, following a downwardly revised 0.4% decline (from -0.3%) in December. Total capacity utilization was 76.8%, as expected, following an upwardly revised 77.1% (from 77.0%) in December.
The key takeaway from the report is that the weakness in production stemmed largely from a drop in production at Boeing and warmer-than-normal temperatures that reduced heating demand and weighed on the output of utilities.
The preliminary University of Michigan Index of Consumer Sentiment for February increased to 100.9 (Briefing.com consensus 99.2) from the final reading of 99.8 for January. That was just shy of the expansion peak of 101.4 seen in March 2018.
The key takeaway is that positive consumer attitudes continue to be underpinned by a favorable move of the outlook, which is tied in large part to feeling of job security and income growth prospects.
Business inventories increased 0.1% in December, as expected, while the November reading was unrevised at -0.2%.

As a reminder, the market will be closed on Monday for Washington's Birthday.

Nasdaq Composite +8.5% YTD
S&P 500 +4.6% YTD
Dow Jones Industrial Average +3.0% YTD
Russell 2000 +1.2% YTD

Market Snapshot
Dow 29397.99 -25.23 (-0.09%)
Nasdaq 9731.20 +19.21 (0.20%)
SP 500 3380.16 +6.22 (0.18%)
10-yr Note +24/32 1.587
NYSE Adv 1479 Dec 1371 Vol 844.3 mln
Nasdaq Adv 1423 Dec 1732 Vol 2.2 bln

Industry Watch
Strong: Real Estate, Utilities
Weak: Energy, Consumer Discretionary

Moving the Market

-- Stock market closes mixed and little changed, preserves weekly gains

-- Mostly in-line batch of economic data, including 0.3% increase in January retail sales

-- U.S. Treasuries advanced in front of three-day weekend

WTI crude gains 1% to end week
14-Feb-20 15:25 ET
Dow -104.79 at 29318.43, Nasdaq -5.47 at 9706.52, S&P -2.64 at 3371.30

[BRIEFING.COM] The S&P 500 continues to trade down by 0.1% in this tight-ranged session.

One last look at the S&P 500 sectors shows energy (-1.2%) and consumer discretionary (-0.4%) underperforming the broader market, while real estate (+0.7%) outperforms with a comfortable gain.

WTI crude settled up $0.53 (+1.0%) to $51.93/bbl.