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Morning Commentary


By Charles Payne, CEO & Principal Analyst
2/7/2020 9:35 AM

The coronavirus continues to linger, but the fear pendulum has shifted from a global pandemic to missing this equity block party. Once again, all three major indices are higher on a continued flow of strong economic data, and perhaps it’s a chance for Washington, D.C. to hit the reset button.

The search for value continued in a week that has seen the resurrection of beaten-down old favorites, such as International Business Machines (IBM) and Biogen Inc (BIIB). Twitter (TWTR) joined the party after inventing a valuation metric (measurable daily active users) and then blowing it away. 

S&P 500 Index



Communication Services (XLC)



Consumer Discretionary (XLY)



Consumer Staples (XLP)



Energy (XLE)



Financials (XLF)



Health Care (XLV)



Industrials (XLI)



Materials (XLB)



Real Estate (XLRE)



Technology (XLK)



Utilities (XLU)



Can Boeing Get Airborne?

Speaking of beaten-down stocks that can move the entire market, few publicly traded companies are more important than Boeing (BA). The hits keep coming for the 737 Max, but there is a sense they will be back in action sometime this summer.

The stock has made a series of lower highs. Most likely, that reverses with a close above $355.00 - from there, the stock could travel to $400 very quickly.

Market Breadth

Although the market staved off early weakness, it’s clear 1,100 Dow points in four sessions feel toppy; hence, the market breadth saw more decliners than advancers, although 52-week highs dwarfed 52-week lows:



Earnings Parade

After the close on Thursday, a big slew of names beat the Street, and offered guidance that sent their share prices higher:

Portfolio Approach                   

We added a new Technology idea to the model portfolio.

Jobs Report

Today, all eyes will be on the jobs report for January 2020.


Today’s Session

The January nonfarm payroll came in at 225,000 new jobs, of which 206,000 were in the private sector.  Hourly wages increased 0.2% for the month and are up 3.1% year over year.  The unemployment rate ticked up to 3.6%, but that is largely in part to the Labor Participation rising to 63.4%.  December was revised higher to 147,000 from 145,000 and November’s numbers increased to 261,000 from 256,000.

The markets are under pressure this morning.  


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