U.S. markets were slightly weak to start Friday’s action following a couple of high profile earnings misses and slightly disappointing economic news. However, the major indexes got a lift following signs the U.S. and China are close to finishing some sections of the phase one trade accord.
Treasury Secretary Steve Mnuchin and U.S. Trade Representative Robert Lighthizer held a phone call with Chinese Vice Premier Liu He, with reports progress was made on specific issues. Discussions will go on continuously at the deputy level, and the three will have another call in the near future.
The rally helped push the major indexes towards key resistance levels with the S&P 500 coming within spitting distance of its all-time intraday high. More importantly, volatility fell below another key level of support and is signaling a continued rally over the near-term.
The Nasdaq jumped 0.7% following the intraday push to 8,249. Key resistance at 8,250 was challenged but held with a close above this level being a bullish development for a push towards 8,300-8,350 with the all-time high at 8,339.
The Russell 2000 rose 0.6% following the morning trip to 1,562. Lower resistance at 1,560-1,575 was breached but held by just over a point with a close above the latter getting 1,585-1,600 back in focus.
The Dow also gained 0.6% after tapping an intraday high of 27,015. Key resistance at 27,000 was cleared but held with a close above this level getting 27,200-27,400 and the July all-time high of 27,398 back in play.
The S&P 500 was up 0.4% after tapping an intraday peak of 3,027 and coming within a half-point of its all-time high just south of 3,028. Major resistance and the all-time closing high of 3,025 held by a couple points with a close above this level leading to a run towards 3,050-3,075.
For the week, the Nasdaq zoomed 1.9% and the Russell 2000 surged 1.7%. The S&P 500 soared 1.2% and the Dow was higher by 0.7%.
Technology and Materials paced sector strength on Friday after rising 1.2% and 1.1%, respectively. Real Estate and Utilities showed the most sector weakness after falling 1.2% and 1%, respectively.
For the week, the best performing sectors were Energy (3%), Financials and Utilities (1.9%). Sector laggards included Communication Services (-1.9%), Consumer Discretionary (-1%) and Healthcare (-0.2%).
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MONDAY’S EARNINGS ANNOUNCEMENTS Before the open: AT&T (T), Bank of Hawaii (BOH), Check Point Software (CHKP), Dorman Products (DORM), Loews (L), ON Semiconductor (ON), Restaurant Brands International (QSR), Spotify Technology (SPOT), Walgreens Boots Alliance (WBA)After the close: Akamai Technologies (AKAM), Alphabet (GOOGL), Beyond Meat (BYND), Carriage Services (CSV), Crane (CR), Encompass Health (EHC), Harmonic (HLIT), Instructure (INST), Leggett & Platt (LEG), NXP Semiconductors (NXPI), OneMain Holdings (OMF), Retail Opportunity Investments (ROIC), SBA Communications (SBAC), T-Mobile US (TMUS), Varonis Systems (VRNS), Welltower (WELL), XPO Logistics(XPO)
MONDAY’S ECONOMIC NEWSInternational Trade in Goods – 8:30amChicago Fed National Activity Index – 8:30amRetail Inventories – 8:30amWholesale Inventories – 8:30amDallas Fed Manufacturing Survey – 10:30am
METALS / OILGold closed at $1,505.30 an ounce,