U.S. markets rebounded on Tuesday following two-days of losses to keep a 5-day mini trading range intact. The major indexes cleared near-term resistance levels and remain on track to clear and hold their 50-day moving averages on continued strength.
Earnings from the Financial sector provided some strength despite the mixed results. Meanwhile, volatility eased but remains slightly above key support levels.The Nasdaq showed the most strength after rallying 1.7% while testing a high of 7,025. Prior and lower resistance 7,000-7,050 and the 50-day moving average was cleared and held with a close above the latter signaling higher highs.The S&P 500 gained 1.1% after tapping a session high of 2,613 while closing above 2,600. Continued closes above this level keeps 2,625-2,650 and the 50-day moving average in play.The Russell 2000 rose 0.9% following the late day push to 1,444 and session high. Lower resistance at 1,450-1,465 and the 50-day moving average held with a close above the latter being a bullish signal.The Dow rose 0.7% following the morning test to 24,099. Fresh and lower resistance at 24,000-24,250 was cleared and held with a close above the latter getting 24,500 and the 50-day moving average in focus.Healthcare led sector strength after surging 1.8%. Communications Services and Technology were up 1.7% and 1.5%.Materials and Industrials were the only sector laggards after giving back 0.7% and 0.3%. respectively.
Akamai (AKAM) upgraded to Overweight from Equal Weight at Morgan StanleyCiti (C) upgraded to Outperform from Market Perform at BMO CapitalViacom (VIA, VIAB) upgraded to Buy from Hold at Pivotal ResearchEdison International (EIX) downgraded to Underperform from Neutral at BofA/MerrillPG&E (PCG) downgraded to Sell from Buy at ArgusSL Green Realty (SLG) downgraded to Neutral from Buy at Goldman Sachs
EARNINGS Wednesday Before the Open (EST):Bank of America (BAC), Bank of New York Mellon (BK), BlackRock (BLK), Comerica (CMA), Goldman Sachs (GS), U.S. Bancorp (USB)
Wednesday After the Close (EST): Alcoa (AA), Carriage Services (CSV), CSX (CSX), Eagle Bancorp (EGBN), H.B. Fuller (FUL), Hancock Witney (HWC), Kinder Morgan (KMI), Plexus (PLXS)
UPCOMING ECONOMIC NEWS Wednesday’s Economic Reports (EST):MBA Mortgage Applications – 7:00amRetail Sales – 8:30amImport and Export Prices – 8:30amRedbook – 8:55amBusiness Inventories –10:00amHousing Market Index – 10:00amBeige Book – 2:00pm
METALS / OIL
Gold closed at $1,288.40 an ounce, down $2.90Silver settled at $15.62 an ounce, down $0.07
Copper finished at $2.63 a pound, unchanged
Crude Oil is at $52.10 a barrel, up $1.41
Bitcoin Investment Trust (GBTC) ended at $4.21, down $0.26
I hope this helps you prepare for the trading day. Make it a great one!
Todd Mitchell
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