A SOLID EARNINGS SEASON
By Friday, nearly 70%of the firms in the S&P 500 had announced quarterly results - and so far, so good. Thomson Reuters data shows that 66% of these companies have beaten revenue projections, and nearly 70% have surpassed earnings forecasts compared to 65% over the previous four quarters. As it stands now, if the rest of the S&P's components report quarterly results in line with estimates, Q4 earnings for S&P 500 companies will grow 5.2%. Thomson Reuters had projected a 1.9% rise. (1,2)
  
ISM SERVICES REPORT SHOWS SUSTAINED GROWTH
The U.S. service sector expanded at a marginally slower pace in January, according to the Institute for Supply Management's non-manufacturing index. The January reading of 55.2 wasn't much removed from the December reading of 55.7, and indicated steadiness in non-manufacturing activity. (3)
  
OBAMA ASKS CONGRESS TO POSTPONE BUDGET CUTS
Last week, the President asked Capitol Hill lawmakers to "pass a smaller package of spending cuts and tax reforms that would delay the economically damaging effects of the sequester for a few more months." Some analysts think Democrats will push to end tax breaks for energy firms in an effort to generate more revenue and stave off deeper cuts planned for March 1. Senate Minority Leader Mitch McConnell (R-KY) commented that "raising taxes on private jets or energy companies" amounted to "gimmicks" in lieu of "real solutions" to reducing the deficit. (4)
  
NASDAQ SETTLES AT 12-YEAR PEAK
The tech-heavy index closed at 3,193.87 Friday, up 0.46% across five trading days. The S&P 500 gained 0.31% last week, settling Friday at 1,517.93. Yet the week was mixed, with the Dow pulling back 0.12% to close at 13,992.97  Friday. On the COMEX, oil ended the week at $96.40, gold at $1,668.80. Gas prices averaged $3.57 a gallon on Friday in AAA's survey; that was nearly a four-month peak. (2,5,6)

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