U.S. markets showed strength on Tuesday’s open after China confirmed it was still in talks with the White House in an effort to broker a comprehensive trade agreement. China’s Ministry of Commerce, China’s Vice Premier Liu He, U.S. Treasury Secretary Mnuchin and trade representative Lighthizer spoke by phone on the timetable and road map of future trade talks.
The gains were short lived as political tension over boarder security and chatter of a government shutdown overshadowed renewed optimism with the major indexes settling mixed. Volatility remained elevated but tested a lower low and lower high than the previous session despite the whipsaw action.The Nasdaq gained 0.2% following the intraday push to 7,129. Prior resistance at 7,125-7,175 held with a move above 7,200 being a more bullish development.The S&P 500 slipped a point, or 0.04% after testing an intraday high of 2,674. Resistance at 2,675-2,700 held with continued closes above the latter signaling a possible near-term bottom.The Dow was lower by 0.2% despite trading to an opening high of 24,791. Near-term and lower resistance at 24,800-25,000 held with a close above the latter and the 200-day moving average being a slightly bullish signal.The Russell 2000 was down 0.2% after testing a morning peak of 1,465. Lower and fresh resistance at 1,465-1,480 held on a dime with additional hurdles at 1,485-1,500.Consumer Staples rose 0.8% to lead sector strength. Utilities and Healthcare were up 0.4% and 0.3%, respectively.Financials and Industrials paced sector weakness with declines of 1% and 0.6%, respectively.
AT&T (T) upgraded to Buy from Neutral at CitiZynga (ZNGA) upgraded to Outperform from Neutral at MacquarieAllstate (ALL) upgraded to Hold from Sell at Edward Jones
Pfizer (PFE) downgraded to Neutral from Overweight at JPMorganCalAmp (CAMP) downgraded to Outperform from Strong Buy at First AnalysisVersum Materials (VSM) downgraded to Sell from Neutral at Goldman Sachs
Wednesday’s earnings announcements (EST):
Before the open: Peak Resorts (SKIS), Photronics (PLAB), Vera Bradley (VRA)
After the close: NCI Building Systems (NCS), Nordson (NDSN), Oxford Industries (OXM), Tailored Brands (TLRD), TechnipFMC (FTI)
UPCOMING ECONOMIC NEWS Wednesday’s Economic Reports (EST):MBA Mortgage Applications – 7:00amConsumer Price Index – 8:30amAtlantic Fed Business Inflation Expectations – 10:00amTreasury Budget – 2:00pm
METALS / OIL
Gold closed at $1,247.20 an ounce, down $2.20Silver settled at $14.63 an ounce, up $0.02
Copper finished at $2.77 a pound, up $0.05
Crude Oil is at $52.01 a barrel, up $1.17
Bitcoin Investment Trust (GBTC) ended at $3.95down $0.08
I hope this helps you prepare for the trading day. Make it a great one!
Todd Mitchell
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