NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rise As Retail Sales Drop

SP500 is moving higher as traders react to U.S. economic reports. Retail Sales declined by 0.8% month-over-month in January, compared to analyst consensus of -0.1%. The weaker-than-expected report provided support to SP500 as traders reduced their bets on a more hawkish Fed. Industrial Production declined by 0.1% month-over-month in January, compared to analyst consensus of +0.3%. Initial Jobless Claims report showed that 212,000 Americans filed for unemployment benefits in a week. NY Empire State Manufacturing Index improved from -43.7 in January to -2.4 in February, while NAHB Housing Market Index increased from 44 to 48. With multiple reports to digest, traders focused on the Retail Sales data. Fed will be able to start cutting rates faster if consumer activity declines. Fed policy outlook is one of the biggest drivers for the stock market, so it’s not surprising to see that traders rushed to increase their long positions after the release of Retail Sales data.

From the technical point of view, SP500 managed to settle above the resistance at 4990 – 5000 and is moving towards the 5050 level.