Markets Grapple with Resistance Amid Sector Divergence
The S&P 500 continues to wrestle with resistance near recent highs, facing choppy trading as momentum fades and sellers step in. On the sector level, Consumer Discretionary (XLY) is underperforming, dragged lower by Tesla (TSLA) struggling to reclaim its 50-SMA and Amazon (AMZN) showing softness but still trading well above its 200-SMA (around $195-$200, vs. recent prices near $230). Meanwhile, Consumer Staples (XLP) is finding its footing, staging a solid recovery after Walmart (WMT) shook off yesterday’s post-earnings drop, pointing to a shift toward defensive plays.
Consumer Confidence Takes a Dive
The University of Michigan consumer sentiment index slumped to 64.7 in February, missing the 67.8 consensus and sliding 9.8% from January and 15.9% year-over-year. Inflation expectations are jolting higher—one-year outlook at 4.3% (highest since November 2023), five-year at 3.5% (highest since April 1995). Survey director Joanne Hsu notes political splits: Republicans hold steady, but Democrats and Independents are rattled by fears of Trump’s tariff plans.
PMI Data Paints a Mixed Picture
S&P PMI numbers show a split economy: Services PMI cratered to 49.7, below the 53 expectation and into contraction territory—the weakest in over two years. Manufacturing PMI came in at 51.6, a slight beat but signaling slower growth. Businesses point to uncertainty over federal policies—spending cuts and tariffs—as optimism hits its lowest since December 2022.
Newmont Mining (NEM) Shines, Market Sells
Newmont Mining (NEM) delivered a Q4 blockbuster: $1.40/share (vs. $0.95 expected) and $5.65B revenue (vs. $4.88B expected), a 44.33% earnings beat and 42.84% revenue jump year-over-year. Despite the win, shares are selling off, caught in the broader market tide, though finding technical support at the 200-SMA.
UnitedHealth (UNH) Sinks on DOJ Scrutiny
UnitedHealth (UNH) shares dropped ~8% pre-market after The Wall Street Journal reported a Justice Department investigation into its Medicare billing practices, zeroing in on Medicare Advantage diagnosis protocols. The probe piles pressure on a stock already testing multi-month lows.
What’s Coming Up at Tackle Trading?
The Tackle Trading Newsletter and Traders Report will be released later today in what is always a highly anticipated weekly event at Tackle Trading. Be sure to check it out for full market analysis and those highly sought after technical setups!
The Trading Justice podcast will be released this weekend as Matt and Mark discuss all things markets and the most interesting stock stories of the week.
S&P 500 (SPX)
Markets are pulling back to end the week and you will be sure to listen to all of Matt’s technical analysis breakdown in the Tackle Trading Newsletter this weekend.
