Tuesday the Broad Market Extends the Gains Off Friday’s Recovery

Tuesday the Broad Market Extends the Gains Off Friday’s Recovery

$DIA, $SPY, $QQQ, $RUTX, $VXX

FLASH: Small businesses see bright future ahead

  • Most S&P 500 sectors finish with gains
  • Softening Consumer Price Index for February reinforced notion Fed will be patient
  • US Treasury yields even lower

Optimism among small companies in the US improved in February, snapping a 5-month losing streak that was the longest in 20 years on brighter views of future conditions.

The Trump Policies are working.

The National Federation of Independent Business optimism index rose to 101.7 from a 2-year low of 101.2, according to a report Tuesday, as 5 of 10 index components improved, including views about the current environment for expansion and capital spending plans.

Key Insights

  • The measure is showing signs of stabilization following the government shutdown, and remains at a historically elevated level despite cooling from a record 108.8 in August.
  • “Now that the government is funded, owners should be getting back to business with the rebound in consumer sentiment,” survey authors William Dunkelberg and Holly Wade said in the report. “Earnings trends took a hit as a million laid off workers and others affected by the shutdown cut back on spending.”
  • While some indicators point to a softer start to this year, including Friday’s jobs report showing February payrolls growth was the weakest in more than a year, consumers remain upbeat amid a resurgent stock market and steady job gains. Americans are the most confident about current conditions in 18 years, Conference Board surveys show, and the Consumer Comfort gauge is at the highest level since late Y 2000.
  • Components tracking plans to hire and earnings trends posted the only declines among the index components.
  • Plans to increase inventories, sales expectations and expectations for credit conditions were unchanged in the survey last month of more than 500 respondents.

Tuesday, the major US stock market indexes finished at: DJIA -96.22 at 25554.66, NAS Comp +32.97 at 7591.03, S&P 500 +8.22 at 2791.52

Volume: Trade on the NYSE came in at 826-M/shares exchanged

  • Russell 2000 +14.9% YTD
  • NAS Comp +14.4% YTD
  • S&P 500 +11.4% YTD
  • DJIA +9.6% YTD

HeffX-LTN’s overall technical outlook on the major US stock market indexes is Bullish in here.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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