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Stock Market News for Feb 14, 2018

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Benchmarks closed in positive territory on Tuesday for three straight trading days after posting their worst weekly performance in two years. Despite registering gains on Tuesday, both the Dow and S&P 500 are at least 7% lower than their all-time high levels registered on Jan 26. The tech-heavy index Nasdaq is also down 6.6% from its late January record levels. Additionally, trading volumes during the day were comparatively lower as investors waited for Bureau of Labor Statistics’ consumer prices report on Wednesday for further clues on inflation.

How the Benchmarks Fared?

The Dow Jones Industrial Average (DJI) increased 0.2%, to close at 24,640.45. The S&P 500 rose 0.3% to close at 2,662.94. The tech-laden Nasdaq Composite Index closed at 7,013.51, gaining 0.5%. The fear-gauge CBOE Volatility Index (VIX) decreased 2.5% to close at 24.97. A total of 6.4 billion shares were traded on Tuesday, lower than the last 20-session average of 8.4 billion shares. Advancers outnumbered decliners on the NYSE by a 1.31-to-1 ratio. On Nasdaq, a 1.48-to-1 ratio favored advancing issues.

Markets Recover for Third Straight Day

All key U.S. indexes rebounded and increased for the third consecutive trading day after entering correction territory last week. Although, the movement lacked specific catalysts, some of the day’s gains were fueled by individual company news. For the S&P 500, eight of the 11 key sectors increased on Tuesday, with real estate stocks leading the way.

The Real Estate Select Sector SPDR (XLRE) climbed 0.7% and was the best performer among key S&P 500 sectors. The sector’s key components, including Equinix, Inc. (REIT) (EQIX - Free Report) and Prologis, Inc. (PLD - Free Report) advanced 1.1% and 1.7%.

On the earnings front, shares of Under Armour, Inc. (UAA - Free Report) increased 17.4% after the company posted fourth quarter revenues of $1.365 billion, handily beating the Zacks Consensus Estimate of $1.308 billion. The top line also increased by 5% from its year-over-year figure. Under Armour was the best performing stock among the S&P 500.

Additionally, shares of Amazon.com, Inc. (AMZN - Free Report) advanced 2% following news that the retailer of consumer products and subscriptions will focus on improving its medical-products business. Amazonhas a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Gains in Amazon led the Technology Select Sector SPDR (XLK) to increase 0.3%, emerging as the best performer among the S&P 500’s key sectors. Some of its key holdings, including Apple Inc. (AAPL - Free Report) and Microsoft Corporation (MSFT - Free Report) increased 1% and 0.8%, respectively.

Additionally, investors were keenly awaiting a key report on consumer price index to be released by Bureau of Labor Statistics. Evidence of higher inflation is expected to bring in new wave of market selloff.

Stocks That Made Headlines

Caterpillar January Sales up 34%: Will the Momentum Sustain?

Caterpillar Inc. (CAT - Free Report) reported a rise of 34% in global retail sales for the three months ended January 2018, at par with the performance witnessed in December 2017 and at levels last seen in August 2011. (Read More)

Wearables Drives Fossil in Q4 Earnings, Stock up 80%

Fossil Group Inc. (FOSL - Free Report) saw its shares soar following the company’s upbeat fourth-quarter 2017 results. (Read More)

Molson Coors Q4 Earnings & Sales Rise Y/Y; Stock Gains

Molson Coors Brewing Company (TAP - Free Report) reported fourth-quarter 2017 results, wherein both the top and bottom line improved year over year and the latter also beat the Zacks Consensus Estimate. (Read More)

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