US Stock Markets Ended Sept. 13, 2019

Stocks moved higher for the week on better-than-expected economic data and trade optimism as Treasury Secretary Steven Mnuchin said there has been "lots of progress" between the U.S. and China.  The consumer remains especially strong as retail sales were above expectations and consumer confidence rebounded from August.  The market was extremely bifurcated for the week with value and cyclical stocks outperforming growth and safety names.   Strong economic data points and a sharp rise in longer duration treasury yields led to robust performance for financial shares, while real estate, consumer staples and utilities lagged as all three sectors tend to be interest-rate sensitive. Turning to stock news,  shares of Oracle Corp. dropped after reporting a disappointing quarter as cloud sales remain challenged. In addition, Chief Executive Officer Mark Hurd announced he will take an unexpected leave of absence due to health reasons.  HD Supply Holdings, Inc.  declined after issuing disappointing guidance on weakness in the construction and industrial end markets.  Progressive Corp. fell after reporting a worsening combined ratio on higher losses in its underwriting book.  Despite posting a 32% rise in billings, shares of Zscaler, Inc. plummeted as the cloud-based security firm did not beat street expectations by a wide enough margin.  Looking ahead to next week,  investors will be focused on the Federal Reserve and other central banks around the globe setting interest rates.  Sector and style reposition may impact markets in the weeks to come as last week's sharp reversal to economically sensitive sectors and value stocks at the expense of lower volatility and past winners could persist or revert back.
Posted on Monday, September 16, 2019 @ 8:31 AM

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.