Daily Insight

U.S. stocks were able to shake off another very weak home sales report, rallying in the afternoon to propel the broad market’s (S&P 500) winning streak to five sessions. The Dow and NASDAQ Composite posted their fourth gain in the past five days.

A better-than-expected increase in retail sales for stores open at least a year (known as chain-store sales) was really the best news yesterday and probably helped to offset the day’s other economic releases, which weren’t exactly helpful. The latest data on pending home sales suggested that the housing-market weakness of the past couple of months will extend into February and March.

The jobless claims data had to be viewed as a net negative – while initial claims fell, they remain at an elevated level and continuing claims are stuck at unprecedented levels. Nonfarm productivity for the most recent quarter posted a very high reading, but only because firms have kept payrolls and hours worked to a minimum. More on all of these releases after the jump.

Energy and health-care shares were a drag on the market. Financials were the best-performing sector as some members of Congress look to dilute the proposed new regulations on the industry and delay its inception.
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Brent Vondera, Senior Analyst