Monday's Market Minute: Equities Advance As Consumers Embrace Home Improvement

With U.S. indices near all-time highs, this week’s focus continues to be on the consumer and existing trends that have developed throughout the pandemic. We closed last week with better-than-expected economic data, and this morning there’s some optimism related to efforts from the President to combat the coronavirus.

With the trend of people being forced to stay at home, we’ve been spending more on our homes – “sprucing them up a bit” as I like to say. Last week, we saw clear signs of how that trend benefits companies like Home Depot Inc HD, Lowe’s Companies Inc LOW, Target Corporation TGT, and homebuilders amidst this rush to more desirable living conditions. This week, we’ll get further insight as to how retailers managed pandemic conditions. Keep an eye on quarterly results from Dick’s Sporting Goods Inc DKS, Best Buy Co Inc BBY Ulta Beauty Inc ULTA, Dollar Tree, Inc. DLTR, Dollar General Corp DG, and Toll Brothers Inc TOL to name a few.

We have some closely watched economic data, with GDP and Durable Goods Orders at the top of the list for potential market movers – but we also have housing data, regional Fed manufacturing index results, Jerome Powell speaking at the Jackson Hole Symposium on Thursday, and Friday inflation numbers.

Recent company results and economic data suggest strong economic conditions here in the U.S. We closed out last week on a positive note after beating expectations on jobs, manufacturing, and earnings. But, there have been some specific winners and losers, and that’s where traders and investors can find opportunity in the weeks to come.

Photo by Roberto Júnior on Unsplash