U.S. markets showed strength for the 2nd-straight session and on the first trading day for 2020 with the major indexes tagging another round of all-time highs. News that China’s central bank will add stimulus for its banks helped fuel the rally here and abroad.Expectations for solid U.S. growth, fading trade tensions and continued central bank accommodation are still supporting stocks. However, the small-caps slacked but volatility continued to ease and is still signaling higher market highs over the near-term.The Nasdaq was up for the 2nd-straight session after rising 1.3% while testing an intraday all-time high of 9,093. Prior and lower resistance at 9,000-9,050 was cleared and held with a close above the latter signaling additional strength towards 9,100-9,150.The Dow jumped 1.2% following the late day run to 28,872 and record high. Fresh and lower resistance at 28,800-29,000 was cleared and held with a close above the latter keeping upside potential towards 29,200-29,400 in play.The S&P 500 added 0.8% with the 2nd half and lifetime high tapping 3,258. Uncharted territory and lower resistance at 3,250-3,275 was breached and held with a close above the latter signaling a possible push towards the 3,300 level.The Russell 2000 was down for the 3rd-time in 4 sessions after slipping 0.1% with the intraday low hitting 1,653. Current and upper support at 1,665-1,650 was breached but held with a move below the latter signaling additional weakness towards 1,635-1,620 and the 50-day moving average.Industrials and Technology led sector strength after soaring 1.9% while Communication Services and Consumer Discretionary rose 1.2%. Utilities paced sector laggards after falling 1.3% while Real Estate and Materials were down 1.2%.
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Designer Brands (DBI) upgraded to Overweight from Equal Weight at Wells FargoFastly (FSLY) upgraded to Overweight from Neutral at Piper JaffrayProgressive (PGR) upgraded to Buy from Hold at Deutsche BankFord (F) downgraded to Underperform from In Line at Evercore ISIIntercept (ICPT) downgraded to Neutral from Buy at CitiSignet Jewelers (SIG) downgraded to Underweight from Equal Weight at Wells Fargo
WEDNESDAY’S EARNINGS ANNOUNCEMENTS Before the open: NoneAfter the close: None
WEDNESDAY’S ECONOMIC NEWSConstruction Spending – 10:00amISM Manufacturing Index – 10:00amBaker-Hughes Rig Count – 1:00pmFOMC Minutes – 2:00pm
METALS/ OILGold closed at $1,531.00 an ounce, up $7.90Silver settled at $18.07 an ounce, up $0.15Copper finished at $2.82 a pound, up $0.03Crude Oil was at $61.15 a barrel, down $0.04Bitcoin Investment Trust (GBTC) ended at $7.98, down $0.21
I hope this helps you prepare for the trading day. Make it a great one!
Todd Mitchell
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