U.S. markets had their best trading since March following strong economic news on continued strength in the labor market. Solid numbers to start 3Q earnings season also helped sentiment with the major indexes showing strength throughout the session.Fresh resistance and prior support levels are back in play following the strong gains. Meanwhile, volatility closed below major support levels and is showing signs of a continued rally.
The Nasdaq zoomed 2.9% after trading to an intraday high of 7,658. Lower resistance at 7,650-7,700 held on the close back above the 200-day moving average.The Russell 2000 rallied 2.8% following the late day push to 1,598. Fresh resistance at 1,600 held with additional hurdles at 1,620 and the 200-day moving average.The S&P 500 soared 2.2% after testing a high of 2,813 while holding the 2,800 level into the closing bell. Fresh resistance is at 2,825-2,850 on the close back above the 200-day moving average.The Dow also zoomed 2.2% following the run to 25,817. The close above 25,800 was slightly bullish and gets fresh resistance at 26,000 and the 50-day moving average back in play. Technology led sector strength after jumping 3.1%. Health Care and Communication Services were higher by 2.7% and 2.6%, respectively.There was no sector weakness.
Cracker Barrel (CBRL) upgraded to Outperform from Market Perform at Telsey AdvisorySymantec (SYMC) upgraded to Market Perform from Underperform at CowenTapestry (TPR) upgraded to Buy from Hold at NeedhamAmneal Pharmaceuticals (AMRX) downgraded to Hold from Buy at SunTrust Pinnacle Foods (PF) downgraded to Hold from Buy at Jefferies Spero Therapeutics (SPRO) downgraded to Underperform from Neutral at BofA/Merrill
EARNINGS
Wednesday’s earnings announcements (EST):
Before the open: Abbott Laboratories (ABT), Badger Meter (BMI), M&T Bank (MTB), Northern Trust (NTRS), U.S. Bancorp (USB), Winnebago Industries (WGO)After the close: Alcoa (AA), Crown Holdings (CCK), Kaiser Aluminum (KALU), RLI (RLI), Steel Dynamics (STLD), United Rentals (URI)UPCOMING ECONOMIC NEWS Wednesday’s Economic Reports (EST):MBA Mortgage Applications – 7:00amHousing Starts – 8:30amFOMC Meeting Announcement – 2:00pm
METALS / OIL
Gold closed at $1,230.00 an ounce, up $0.70
Silver settled at $14.70 an ounce, down $0.03
Copper finished at $2.78 a pound, down $0.01
Crude Oil is at $71.86 a barrel, up $0.20
Bitcoin Investment Trust (GBTC) ended at $7.28 up $0.03
I hope this helps you prepare for the trading day. Make it a great one!
Todd Mitchell
Copyright © 1994-2018 Trading Concepts, Inc.
All Rights Reserved.
