All Lights Are Green for Market

The week is off to a bright (green) start as the market closed Monday solidly in positive territory. The Dow Jones Industrial Average was up 1.4%, the S&P 500 up 1.45% and the Nasdaq was up 1.47%. Meanwhile, West Texas Intermediate crude oil closed up nearly 5% to $33.31 a barrel and brought many energy names.

After the close, Fitbit (FIT) reported earnings for its fourth quarter. Shares plunged more than 15% on weakened guidance for the present quarter. Fitbit expects to launch two products this quarter, which will incur additional manufacturing costs. As such, the company said it expected earnings per share this quarter to be in the zero to $0.02 range.

Chesapeake Energy (CHK) was a major beneficiary of Monday's oil rally as shares closed up 19.5% to $2.39. The Oklahoma-based company is due to report earnings on Wednesday and investors and analysts will also be paying attention to the company's capital plans for 2016. Earlier this month, Chesapeake shares fell below $2 on talk that the company had hired outside advisors and was considering filing for bankruptcy protection. The company issued a statement that it has "no plans" to file for bankruptcy and there have been other reports of measures it is taking to handle its near-term debt obligations.

While not a pure energy play, shares of Freeport-McMoRan (FCX) closed up 14.6% to $7.93, due also to the recent rally in copper. Last week, Freeport-McMoRan announced it will be selling a 13% ownership interest in its Morenci mine to Japan-based Sumitomo Metal Mining. The transaction is expected to yield $1 billion, which the Phoenix-based natural resources company will use in part to ease its $20 billion debt burden.

On Tuesday, Real Money will be watching as Macy's (M) reports earnings. Earlier this year, the retailer lowered fourth-quarter earnings guidance to a range of $2.18 to $2.23 per share from a range of $2.54 to $2.64. The company also announced plans to close 40 of its 770 stores.

(source: The Street; Real Money)