Traders had Monday off with Markets closed for Presidents’ Day. But the short week didn’t help stocks, at least early on in the week.
On Tuesday, the major indices struggled. And the DOW led the major indices lower with a 1.0% loss.
All eyes were on the FOMC Meeting Minutes on Wednesday.
The minutes were a little dated since comments were noted BEFORE February’s correction. But the idea that the Fed could start to accelerate their rate hike plans put pressure on stocks.
After trading in positive territory ahead of the release, the major indices dropped to session lows. The DOWled the major indices lower again, this time with a 0.7% loss.
On Thursday, there was a pause in selling and the major indices finished mixed. The S&P and DOW ended positive, but the NASDAQ struggled and finished with a 0.1% loss.
Then came Friday and the entire mood changed. Stocks opened higher Friday morning and never looked back.
The S&P’s 50-day moving average (a key technical level) was an area of resistance during the week. But on Friday, the S&P rallied past its 50-day moving average, and the major indices ended the day at session highs. With Friday’s rally, the major indices erased losses from earlier in the week and ended the week with gains across the board.
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Here’s where the major indices ended the week:
- The S&P finished with a 0.6% gain. Up 15 points, the S&P ended at 2,747.
- The DOW ended 0.4% higher. Adding 91 points, the DOW closed at 25,310.
- The NASDAQ was up 1.4% With a 98 point gain, the NASDAQ finished at 7,337.
- Bitcoin was down 11.0%. Dropping $1,162, Bitcoin is trading at $9,401.
Crude Oil (CL) finished higher for the second week in a row. Working its way back towards 2018 highs, CL ended the week with a 3.2% gain, closing at $63.57 a barrel.
In earnings news, HP (HPQ) reported better than expected earnings and revenues and finished Friday with a 3.5% gain.
Nordstrom (JWN) was up 6.5% after news that the Nordstrom family is hoping to take the company private before next Thursday.
And on Friday Dropbox, the file-sharing company, filed to go public. In its filing with the SEC, the company says it has never made a profit and “may not be able to achieve or maintain profitability.”
Looking at the economic calendar, here are this week’s key reports (all times ET):
- MONDAY – New Home Sales at 10:00am, FOMC Member Quarles Speaks at 3:15pm.
- TUESDAY – Durable Goods Data and Fed Chair Powell Testifies at 8:30am, Consumer Confidence at 10:00am.
- WEDNESDAY – Preliminary GDP at 8:30am, Chicago PMI at 9:45am, Pending Home Sales at 10:00am, and Crude Oil Inventories at 10:30am.
- THURSDAY – Unemployment Claims at 8:30am, Fed Chair Powell Testifies and ISM Manufacturing PMI at 10:00am.
- FRIDAY – Revised Consumer Sentiment at 10:00am.
Source: RockwellTrading by Markus Heitkoetter | Original Link