U.S. markets got off to a good start on Monday after China’s Vice Premier Liu He made some positive comments over the weekend about substantial progress made with the U.S. phase-one trade deal. President Trump also confirmed a potential trade deal with China is coming along well, after mentioning earlier this month he would like a deal signed by the middle of next month.
U.S. markets were choppy throughout Tuesday’s action following mostly better-than-expected earnings and mixed economic news. Late day events on Brexit weighed on the major indexes as the on again, off again, vote remains in flux.
The mixed finish was a throwaway session as near-term support and resistance levels held. Volatility stayed relatively clam before a spike to session highs into the closing bell with near-term resistance holding.
The Russell 2000 was up for the 2nd-straight sessions after adding 0.1% and testing an intraday high of 1,557. Lower resistance at 1,560-1,575 was challenged but held with a close above the latter getting 1,585-1,600 back in play.
The Dow dipped 0.2% despite trading to an intraday higher high of 26,946. Near-term and upper support at 26,750-26,500 held on the opening drop to 26,782 with a close below the latter and the 50-day moving average signaling a possible retest towards 26,250-26,000 and the 200-day moving average.
The S&P 500 fell 0.4% after trading in a 19-point range while testing and closing on the session low of 2,995. Shaky and upper support at 3,000-2,975 was breached and failed to hold with a close below the latter reopening risk towards 2,950 and the 50-day moving average.
The Nasdaq gave back 0.7% following the late session backtest to 8,101. Upper support at 8,100-8,050 held by a point with backup help at 8,000-7,950 and the 50-day moving average on a close below the latter.
Energy and Industrials were the best performing sectors after rising 1.3% and 0.8%, respectively, while Utilities advanced 0.4%. Technology and Communication Services were the leading laggards after falling 1.4% and 1%.
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Discovery (DISCA) upgraded to Outperform from In-Line at Imperial CapitalBank of America (BAC) upgraded to Overweight from Neutral at Atlantic EquitiesWorkday (WDAY) and Anaplan (PLAN) upgraded to Outperform from In Line at Evercore ISIElectronic Arts (EA) downgraded to Equal Weight from Overweight at BarclaysMain Street (MAIN) downgraded to Market Perform from Outperform at Raymond JamesTextron (TXT) downgraded to Neutral from Buy at BofA/Merrill
WEDNESDAY’S EARNINGS ANNOUNCEMENTS Before the open: Anthem (ANTM), Blackstone (BX), Boeing (BA), Boston Scientific (BSX), Caterpillar (CAT), Eli Lilly (LLY), FirstCash (FCFS), General Dynamics (GD), Hilton Worldwide (HLT), Nasdaq (NDAQ), Owens Corning (OC), Popular (BPOP), Rollins (ROL), Silicon Laboratories (SLAB), Travelzoo (TZOO), Waste Management (WM), Winnebago (WGO)After the close: Align Technologies (ALGN), Banner (BANR), CoreLogic (CLGX), eBay (EBAY), F5 Networks (FFIV), Great Lakes (GL), Ingevity (NGVT), Knoll (KNL), Lam Research (LRCX), Las Vegas Sands (LVS), MVI Homes (MHO), Microsoft (MSFT), NextGen Healthcare (NXGN), O’Reilly (ORLY), PayPal (PYPL), QCR Holdings (QCRH), Rocky Brands (RCKY), ServiceNow (NOW), Tesla (TSLA), Valmont Industries (VMI), Xilinx (XLNX)
WEDNESDAY’S ECONOMIC NEWSMBA Mortgage Applications – 7:00amFHFA House Price Index – 9:00am
METALS / OILGold closed at $1,487.50 an ounce,