Stock Market Update

[BRIEFING.COM] The stock market is in the midst of another somewhat quiet session to start the week after last week's roller coaster action. The S&P 500 (+0.1%), Nasdaq Composite (+0.1%), and DJIA (+0.4%) are up modestly, trading in a stable range amid relatively broad strength, with this morning's earnings reports and economic data contributing to the action. 

Seven S&P 500 sectors hold gains, led by the utilities sector (+1.4%), with all of its components currently holding gains. 

The consumer discretionary sector (+1.1%) is another top mover, supported by solid gains from Marriott (MAR 360.49, +29.28, +8.84%) and Hasbro (HAS 104.30, +7.54, +7.79%) after the companies topped earnings expectations. 

Amazon (AMZN 209.93, +1.21, +0.58%) also trades higher after a sharp post-earnings sell-off on Friday. Financial Times reported that the company is one of several that the Trump administration will exempt from upcoming chip tariffs. 

Microsoft (MSFT 418.94, +5.34, +1.29%) was another company that will receive the exemption, trading modestly higher again today as it attempts to rebound from its own post-earnings slide. Software names are putting together another solid rebound effort today, with the iShares GS Software (IGV) 1.4% higher. The broader information technology sector (+0.2%) is just modestly higher for the day, facing pressure in its memory storage components. 

Meanwhile, the consumer staples sector (-0.6%) is the worst-performing S&P 500 sector so far. Walmart (WMT 127.14, -1.88, -1.46%) and Costco (COST 978.30, -19.28, -1.93%) are under pressure following a flat December retail sales report (Briefing.com consensus 0.4%), while Coca-Cola (KO 76.54, -1.43, -1.83%) trades lower after beating EPS estimates but missing on revenues.

The communication services sector (-0.5%) is down similarly due to pressure in Alphabet (GOOG 319.05, -5.35, -1.65%), while the financials sector (-0.5%) also lags amid some weakness in financial publishing names. 

Outside of the S&P 500, the Russell 2000 (+0.5%) and S&P Mid Cap 400 (+0.3%) also hold modest gains. 

Despite a decent batch of earnings and economic data, stocks have traded in a relatively stable range as the market remains largely devoid of any new catalysts. Tech and high beta names are having a quieter session after two solid days of rebound strength, but solid gains across the board manage to push the DJIA to a record high for the third consecutive session. 

Reviewing today's data:

• January NFIB Small Business Optimism 99.3; Prior 99.5
• December Retail Sales 0.0% (Briefing.com consensus 0.4%); Prior 0.6%, December Retail Sales, ex-auto 0.0% (Briefing.com consensus 0.4%); Prior was revised to 0.4% from 0.5%
  • The key takeaway from the report is that spending on goods was down across most discretionary categories following some decent-sized gains in November. That will foment some concern about consumer spending fatigue at the end of last year, which of course included the holiday shopping period.
• Q4 Employment Cost Index 0.7% (Briefing.com consensus 0.8%); Prior 0.8%
  • The key takeaway from the report is that there was some moderation in employment costs on a year-over-year basis that will help temper inflation worries.
• December Import Prices 0.1%
• December Import Prices ex-oil 0.4%
• December Export Prices 0.3%
• December Export Prices ex-ag. 0.3%
• November Business Inventories 0.1% (Briefing.com consensus 0.2%); Prior was revised to 0.2% from 0.3%