The futures markets changed little this morning following a new all-time high set on the S&P 500 Index during the trading session yesterday. Market participants are digesting this, along with news that President Trump is considering additional 25% tariffs on automobiles, pharmaceuticals, and semiconductors, which could come as early as April 2nd, though details of the plan could change. The U.S. Census Bureau also showed that seasonally-adjusted annual building permits reached 1.483 million, while housing starts were 1.366 million for January. Though building permits came in slightly higher than expected, housing starts showed a notable decline from the prior-year period. The futures markets moved a little following this release, suggesting an uneven start to the trading day. This afternoon, the minutes of the January Federal Open Market Committee (FOMC) meeting will be released and could have an impact on the trading session later today.
Stock market momentum started positively yesterday, following the Presidents’ Day three-day weekend. The S&P 500 rose to just under its all-time high, before retreating some through the afternoon, while the other composites were also choppy throughout the day. Still, traders went on a surge of buying in the final portion of the day, taking the S&P 500 to a new all-time high. Overall, the S&P 500 rose 15 points (up 0.24%), the NASDAQ increased 459 points (up 2.34%), and the Dow Jones Industrial Average was higher by 10 points (up 0.02%). Moreover, market breadth was quite positive, with advancers outpacing decliners by a 1.4-to-1.0 ratio. Energy issues were amongst the best performers on the day, while communications stocks were amongst the weakest.
In commodity news, oil prices shot higher yesterday, as traders priced in the news of a drone attack on a Russian oil pipeline, while lower European wind generation helped increase demand for fossil fuels. Elsewhere, U.S. Treasury bond yields rose as traders moved out of the safe haven asset. Long-term rates rose more than those with shorter durations. The Chicago Board Options Exchange Volatility Index, or VIX, commonly known as the fear index, fell slightly yesterday as traders priced in the expectation of less stock market volatility.
Several economic reports will be released in the days ahead. These include initial jobless claims, the Philadelphia Fed Manufacturing Survey, and U.S. leading economic indicators on Thursday. On Friday, the S&P flash U.S. Services and Manufacturing PMIs, along with the consumer sentiment report for February, will be on the docket. Additionally, several Federal Reserve Regional Presidents and Vice Chairpersons will give remarks on the broader economy in the coming days. Dozens of companies will also report quarterly results and 2025 outlooks in the coming days, though these are mostly smaller companies. - John E. Seibert III
At the time of this article’s writing, the author did not hold positions in any of the companies mentioned.
CLICK HERE for more information on our services or call 1-800-VALUELINE (1-800-825-8354). Our account managers are available Monday through Friday, 8:00 AM to 6:00 PM Eastern Time.
