Stock Market Outlook for February 5, 2025
December’s JOLT report shines new light on the financial sector (banks) amidst an increase in activity and optimism following the US presidential election.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.
Stocks Entering Period of Seasonal Strength Today:
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Maximus, Inc. (NYSE:MMS) Seasonal Chart
Nordic American Tanker Shipping Ltd. (NYSE:NAT) Seasonal Chart
Restaurant Brands International Inc. (TSE:QSR.TO) Seasonal Chart
Invesco Dynamic Food & Beverage ETF (NYSE:PBJ) Seasonal Chart
iShares Global Consumer Discretionary ETF (NYSE:RXI) Seasonal Chart
SEACOR Marine Holdings Inc. (NYSE:SMHI) Seasonal Chart
The Markets
Stocks closed higher on Tuesday, erasing early week losses, following news that Trump has granted Mexico and Canada a one month reprieve from the implementation of tariffs. The S&P 500 Index gained just over seven-tenths of one percent, keeping the prospect of support at the 20-day moving average (~5990) alive, for now. The benchmark has confirmed resistance at the gap that was opened during the Artificial Intelligence fuelled selloff recorded a week ago Monday between 6017 and 6088. It was inevitable that traders would likely to look to sell into this zone, regardless of the reason, as broader momentum dwindles. Momentum indicators have negatively diverged from price since the middle of last year, highlighting the waning enthusiasm investors had been expressing towards tech-heavy benchmarks, like this, amidst extreme valuations. We continue to monitor the potential impact of the apparent rotation in the market on our list of candidates in the market to Accumulate and to Avoid and we have adopted more of a neutral appearance as segments that were previously noted as Accumulate candidates fall off (eg. Technology) and as areas to Avoid are added.
Today, in our Market Outlook to subscribers, we discuss the following:
- Job Openings and Labor Turnover Survey and the investment implications within
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Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.80.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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