The markets enjoyed a positive day today thanks in part to favorable US-China trade news and a slowdown in the decline of bond yields. The Dow 30 closed the day higher by 91, the S&P 500 added 10, and the Nasdaq closed higher by 25 on the day.
Sector News
Transports (IYT ) were one of the better-performing sectors today thanks in part to the rails, which enjoyed a strong day. The market cap weighted ETF that holds Norfolk Southern (NSC ) and Union Pacific (UNP ) in its top three spots still remains in a highly congested resistance area and in the midst of a technical downtrend.
Gold (GLD ) sold off today as trade news sent the dollar higher and investors back into other areas of the market. This also took down the gold miners (GDX ) and gold-related names. The price of gold is now back below its 50-day moving average.
Utilities (XLU ) continued its pullback today as rated finally took a break. The technically and fundamentally overbought sector of the market has been widely seen as being in a topping process, which explains some of the recent volatility in the sector.
Stock News
Lululemon (LULU ) shares were sharply higher today as the company reported a stellar holiday earnings quarter. The company beat on earnings by 9 cents and reported revenue that was much higher than expected. The company also guided positive for the current quarter and 2019 in full, as well as announcing a $500 million stock buyback.
PVH (PVH ), the apparel retailer, announced earnings that were much better than expected (+$0.08) along with revenue that beat Wall Street's expectations. The Tommy HIlfiger brand was cited as one of the driving forces behind the beat, which caused the company to raise their outlook for 2019.
Five Below (FIVE ) shares were also higher on the day as the company beat on earnings and revenue. The one negative was their guidance going forward for 2019, which came in lower than expected. That didn't stop Goldman Sachs (GS ) from upgrading the stock to conviction buy.
