Wall Street was down for the fourth time in five sessions as heavy losses in Tech stocks highlighted Friday’s action despite mostly positive earnings results. Investors choose to sell-the-news while concentrating on the growing numbers of coronavirus cases and potential shutdowns along with the upcoming Presidential election.
The major indexes closed well off the session lows with the final hour bounce capping a losing week, and overall down month. Meanwhile, volatility set a fresh October high and will likely stay elevated well into November as Wall Streets awaits the outcome and how long it might take to announce a winner.
The Nasdaq traded an intraday low of 10,822 before finishing at 10,911 (-2.5%). Prior and upper support at 10,900-10,800 was breached but held. A close below the latter would indicate additional weakness towards 11,600-11,500 and levels from late September.
The Russell 2000 tapped an afternoon low of 1,526 before settling at 1,538 (-1.5%). Current and upper support at 1,540-1,525 failed to hold. A move below the latter would indicate a further backtest towards 1,515-1,500. Below is a chart of the IWM.
The S&P 500 closed at 3,269 (-1.2%) following the tumble to 3,233. Prior and upper support from mid-September at 3,250-3,225 was tripped but held. A move below the latter would signal further downside risk towards 3,200-3,175.
The Dow plunged to a low of 26,143 while closing at 26,501 (-0.6%). Upper support from late July at 26,250-26,000 and the 200-day moving average were breached but levels that held. A drop below the latter would suggest a retest towards 25,750-25,500.
For the week, For the week, the Dow plummeted 6.5% and the S&P 500 sank 5.6%. The Russell and the Nasdaq were down 5.5%. For the month, the Dow was down 4.6% and the S&P 500 fell 2.7%. The Nasdaq was off 2.3% while the Russell 2000 rallied 2%.
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Cheesecake Factory (CAKE) upgraded to Buy from Hold at Gordon HaskettGildan Activewear (GIL) upgraded to Outperform from Market Perform at BMO CapitalSpirit Airlines (SAVE) upgraded to Overweight from Neutral at JPMorgan
Atlassian (TEAM) downgraded to Hold from Buy at TruistBellicum Pharmaceuticals (BLCM) downgraded to Equal Weight from Overweight at Wells FargoPixelworks (PXLW) downgraded to Hold from Buy at Lake Street
MONDAY’S EARNINGS ANNOUNCEMENTSBefore the open: AMC Networks (AMCX), Clorox (CLX), DSP Group (DSPG), Estee Lauder (EL), Horizon Pharma (HZNP), Itron (ITRI), Lumber Liquidators (LL), Pitney Bowes (PBI), Tenneco (TEN), Wingstop (WING)
After the close: Arista Networks (ANET), Camping World Holdings (CWH), EverQuote (EVER), Freshpet (FRPT), Greenhill & Co (GHL), Ingersoll-Rand (IR), j2 Global Communications (JCOM), Kforce (KFRC), Mosaic (MOS), Otter Tail (OTTR), PayPal (PYPL), Rambus (RMBS), Trex Compamy (TREX), Vornado Realty Trust (VNO), Williams Companies (WMB)
MONDAY’S ECONOMIC NEWSPCE Price Index – 8:30amPMI Manufacturing Index – 9:45amISM Manufacturing Index – 10:00amConstruction Spending – 10:00am
METALS/ OILGold closed at $1,879.90 an ounce, up $11.90Silver settled at $23.65 an ounce, up $0.29Copper finished at $3.05 a pound, down $0.01Crude Oil was at $35.72 a barrel, down $0.39Bitcoin Investment Trust (GBTC) ended at $15.38 up $0.12
I hope this helps you prepare for the trading day. Make it a great one!
Todd Mitchell
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