Monday's Market Minute: US Indices Headed Into A Big Week

Last week we saw new all-time highs in three of the four major U.S. stock index futures products (/ES, /NQ, /YM) even as concerns associated with the coronavirus continue to linger – the S&P 500 posted its best week since June.

The move up was on better-than-expected economic data here in the U.S., weak economic conditions globally, and overall strong quarterly results from companies reporting earnings. Last week we received further proof of how the U.S. labor market remains very strong – non-farm payrolls Friday topped estimates for 160K, with actual jobs created in January at 225K. This week, it’ll be key to listen to comments from Fed Chair Jerome Powell Tuesday and Wednesday on the Hill to determine how significant the Fed thinks the impact of the coronavirus will be on growth, how the Fed plans to counter the fall in commodity prices, and inflation, which remains below the 2% target.

The week caps off with some closely-watched economic data: CPI, retail sales, industrial production, and JOLTS. I think we should also keep an eye on the U.S. Dollar – which is back to levels we haven’t seen since the beginning of October – the 10-year back to the middle of the range it has been in since August, and Gold, which has been performing a levitation act as it remains bid above 1555 even with multiple bearish factors at play. Heads up, because it’s not just indices, currencies, and treasuries this week to keep an eye on – we also have grains, which have been selling off pre-coronavirus highs.

The WASDE report (World Agriculture Supply and Demand Estimates) this week could be a catalyst. So stay tuned to the TD Ameritrade Network for coverage of all the economic data scheduled for release, and in-depth analysis of market reaction to the news!

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