“Markets Rebound With ISM But Energy Sector Drags” – Vista Partners Daily Market Recap For Feb. 3, 2020

It was a nice start to the week today as we saw a rebound for last week’s sell-off as we saw the ISM manufacturing index come in again above the Mendoza line at 50.9% which is back above the expansion mode level. The positive move helped a little after my hometown San Francisco 49ers failed to deliver the Superbowl yesterday but nonetheless had an admirable season and game.

The tech-heavy Nasdaq led the way ending at 9,273.40, +1.34%. The little guys on the Russell 2000 came in second moving higher by +1.12% ending at 1,632.21. The S&P 500 ended at 3,248.92, +.73% as the materials sector charge up +2.1% while the energy sector dragged -1.3% as oil dropped -3%.  The Dow Jones Industrial Average ended at 28,399.81.  +.51%.

The FAANG stocks finished mixed today. Facebook (FB) closed at $204.19/share, +1.13%. Amazon (AMZN) closed at $2,004.20/share, -.23%.  Apple (AAPL) closed at $308.66/share, -.27%. Netflix (NFLX) closed at $358/share, +3.74% & Alphabet (GOOG) closed at $1485.94/share, +3.61%, however, they reported mixed results after the market closed and is currently trading off -4.57%.

The “fear gauge” Vix (TVIX) ended at $52.74/share pulling back -6.79% and traded in a wider range of $49.93 – $55.16.

Economic Reports

On Monday we received the ISM Manufacturing Index report for January which moved up to 50.9% & back into the expansion mode level. However total construction spending went down by -.2% month/month in December while residential spending moved higher bu +1.4% month/month & nonresidential spending lowered by -1.2% month/month.

Investing & Inspiration

“Let this scenario play out on its own, in its own fashion. As you watch it unfold, you will soon be grateful that you choose the peaceful path. Remember — those who live by the sword, die by the sword.”

“As long as you enjoy investing, you’ll be willing to do the homework and stay in the game.” -Jim Cramer

“I rarely think the market is right. I believe non-dividend stocks aren’t much more than baseball cards. They are worth what you can convince someone to pay for it.” -Mark Cuban

“Michael Marcus taught me one other thing that is absolutely critical: You have to be willing to make mistakes regularly; there is nothing wrong with it. Michael taught me about making your best judgment, being wrong, making your next best judgment, being wrong, making your third best judgment, and then doubling your money.” -Bruce Kovner

“The policy of being too cautious is the greatest risk of all.” -Jawaharlal Nehru

“The only true test of whether a stock is “cheap” or “high” is not its current price in relation to some former price, no matter how accustomed we may have become to that former price, but whether the company’s fundamentals are significantly more or less favorable than the current financial-community appraisal of that stock.” -Philip Fisher

“I learned to avoid trying to catch up or double up to recoup losses. I also learned that a certain amount of loss will affect your judgment, so you have to put some time between that loss and the next trade.” -Richard Dennis

“The four most dangerous words in investing are: ‘this time it’s different.” -Sir John Templeton

“Money doesn’t make you happy. I now have $50 million but I was just as happy when I had $48 million.” -Arnold Schwarzenegger

Tomorrow

Tomorrow’s significant economic data report schedule will include the following:

• Factory Orders for December