Daily market review

The market began the week positively after a disappointing finish the previous week. The S&P 500 closing above its 200-day moving average and the 10-year note yield staying below 4% were technical factors that contributed to the positive bias. Treasury yields also experienced a noticeable pullback from overnight highs, which further supported equities. However, the market's strong upside momentum dissipated quickly, and most of the session saw a steady grind lower. The S&P 500 slipped below its 50-day moving average but ultimately settled off its lows thanks to buyers stepping in. Market breadth skewed positive, and most S&P 500 sectors closed with a gain, with consumer discretionary and industrials leading the way. Tesla and Union Pacific's gains drove these sectors, respectively. Conversely, utilities and healthcare suffered the steepest losses.

Regarding economic data, durable goods orders declined 4.5% month-over-month in January, and nondefense capital goods orders, excluding aircraft, rose 0.8% month-over-month. Pending home sales rose 8.1% in January. On Tuesday, market participants will receive economic data on the advance goods trade deficit, retail and wholesale inventories, the FHFA Housing Price Index, the S&P Case Shiller Home Price Index, the Chicago PMI, and consumer confidence.

Notable companies, including Advance Auto, AutoZone, Cracker Barrel, J.M. Smucker, Norwegian Cruise Line, Sea World Entertainment, and Target, will report earnings ahead of Tuesday's open.