U.S. markets showed continued selling pressure on Thursday’s open before rebounding shortly afterwards and testing positive territory. However, sellers emerged in the second hour of trading and another selloff resumed.The major indexes are suffering through their worst week since March with at least 65% of the S&P 500 now in correction territory or worse. Volatility reached its highest level in 8 months with Tech and the small-caps entering correction territory.
The Russell 2000 extended its losing streak to 6-straight sessions after giving back 1.9% and closing at a session low of 1,545. May and upper support at 1,550-1,540 was breached with a move below the latter signaling additional weakness.The Dow dropped 2.1% following the intraday backtest of 24,899. Fresh and upper support at 25,000-24,800 was split with a move below the latter being a continued bearish development.The S&P 500 also sank 2.1% after testing a second half low 2,710. July support at 2,725-2,700 is back in play with a close below the latter signaling lower lows.The Nasdaq fell 1.3% following the intraday pullback to 7,274. Fresh and May support at 7,300-7,250 held with risk to 7,200-7,000 on continued selling pressure.For the 2nd-straight session there was no sector strength.Energy was the weakest sector after falling 3.4% while Financials and Real Estate were off 2.9%. Health Care dropped 2.7%
GoDaddy (GDDY) upgraded to Buy from Neutral at CitiLear (LEA) upgraded to Buy from Neutral at Goldman SachsSiteOne Landscape (SITE) upgraded to Neutral from Sell at UBSFerrari (RACE) downgraded to Hold from Buy at JefferiesTata Motors (TTM) downgraded to Hold from Buy at HSBCValero (VLO) downgraded to Hold from Buy at Tudor PickeringEARNINGS
Friday’s earnings announcements (EST):
Before the open: Citigroup (CITI), First Republic Bank (FRC), JPMorgan Chase (JPM), PNC Bank (PNC), Wells Fargo (WFC)After the close: No major announcementsUPCOMING ECONOMIC NEWS Friday’s Economic Reports (EST):Import and Export Prices – 8:30amConsumer Sentiment – 10:00amCharles Evans, Bostic SpeakBaker-Hughes Rig Count – 1:00pm
METALS / OIL
Gold closed at $1,277.60 an ounce, up $34.20
Silver settled at $14.61 an ounce, up $0.28
Copper finished at $2.80 a pound, up $0.02
Crude Oil is at $70.99 a barrel, down $2.18
Bitcoin Investment Trust (GBTC) ended at $6.78 down $0.53
I hope this helps you prepare for tomorrow. Have a great evening.
Todd Mitchell
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