Market Insights

S&P 500 Overview: Upward momentum appears intact

• Index bounces at 200-day MA after pulling back from 2800.
• Fear indexes like VIX, gold and yen refusing to rally.
• Watch for breakout from tight range, possibly on Brexit clarity.

Economy Refuses to Quit

• January retail sales beat, with housing-related strong.
• Non-farm payrolls missed, but non-cyclical areas like healthcare/education/government led the weakness.
• January housing starts & building permits better than expected.
• ADP private-sector payrolls about inline, with big upward revision for January.
• Jobless claims fall back below estimates.

Is Bad News Good?

• ECB slashes economic growth forecast.
• China stumbles but doesn’t appear to be falling.
• The result could be rates lower for longer, which is seldom bearish.
• Watch Chinese data on Wednesday night.

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Backdrop May Favor Growth Stocks, Small Caps

• Low rates often support higher-multiple stocks.
• M&A may increase, which favors small companies as potential targets.

Post Earnings Pullbacks

• Software growth thesis still intact: CRM, SPLK, VMW, ANET, FTNT, WDAY
• Huya (HUYA): Esports play.
• Global techs on the move: MELI, YNDX, KWEB

Russell’s Watch List:

• Biotechs (IBB, XBI) bouncing after Gottlieb selloff.
• Facebook (FB), Apple (AAPL) escaping recent range.
• Yandex (YNDX): Ever heard of Uber copycat Taxi?
• Lululemon (LULU), Cliffs (CLF) holding 50-day MAs.
• India (EPI) running into April-May general elections.
• Watch for homebuilder ETF (ITB) to potentially break range, especially with new-home sales on Thursday.
• Big pharmacy names (CVS, WBA, TEVA) potentially in distribution.