U.S. markets showed continued strength to start February and ahead of the State of the Union address on Tuesday and Fed Chair Jerome Powell’s upcoming remarks on Wednesday.
Earnings will also play a key role in current momentum as the major indexes continue to push fresh resistance levels.
Meanwhile, volatility continues to weaken and is showing signs of ongoing near-term strength in the market.The Nasdaq was up for the 3rd time in 4 sessions after jumping 1.2% and making a run to 7,348 ahead of the closing bell. Fresh and lower resistance from late November at 7,350-7,400 held with a move below the latter getting 7,450-7,500 and the 200-day moving average in play.The Russell 2000 soared 1% while closing at the session high of 1,517. Fresh and lower resistance at 1,515-1,525 was cleared and held with a move above the latter being a continuing bullish signal.The Dow rallied 0.7% after trading to a high of 25,239 into the close and session peak. Fresh and lower resistance at 25,250-25,500 held on the 2nd-straight close above the 200-day moving average.The S&P 500 was also higher by 0.7% following the trip to 2,724 into the closing bell. Lower resistance at 2,725-2,750 held by 1/100th of a point with a move above the latter and the 200-day moving average signaling additional momentum.Technology and Financial were the strongest sectors after surging 1.6% and 1.3%. Communication Services rallied 1%.Healthcare and Materials were down 0.3% and 0.2%, respectively, and were the only sector laggards.
Addus HomeCare (ADUS) upgraded to Outperform from Neutral at BairdConocoPhillips (COP) upgraded to Buy from Neutral at Goldman SachsIntuit (INTU) upgraded to Equal Weight from Underweight at Morgan StanleyAveo Pharmaceuticals (AVEO) downgraded to Neutral from Buy at B. Riley FBRBHP Billiton (BHP) downgraded to Underweight from Neutral at JPMorganOkta (OKTA) downgraded to Sector Weight from Overweight at KeyBanc
EARNINGS Tuesday Before the Open (EST):Aramark Holdings (ARMK), BP (BP), CSW Industrials (CSWI), Energizer Holdings (ENR), Gartner (IT), Hubbell (HUBB), Ingredion (INGR), Lennox International (LII), MSG Networks (MSGN), Pitney Bowes (PBI), Ralph Lauren (RL), Sally Beauty Holdings (SBH), TransDigm (TDG), Viacom (VIA), WellCare Health Plans (WCG)Tuesday After the Close (EST): Allstate (ALL), Amdocs (DOX), Brooks Automation (BRKS), Chubb (CB), Electronic Arts (ERTS), MVI Homes (MHO), Microchip Technology (MCHP), Shutterfly (SFLY), Skyworks Solutions (SWKS), Snap (SNAP), Torchmark (TMK), Viavi Solutions (VIAV), Walt Disney (DIS), Zendesk (ZEN)
UPCOMING ECONOMIC NEWS Tuesday’s Economic Reports (EST):Redbook – 8:55amPMI Services Index – 9:45amISM Non-Manufacturing Index – 10:00am
METALS / OIL
Gold closed at $1,319.30 an ounce, down $2.80Silver settled at $15.89 an ounce, down $0.04
Copper finished at $2.79 a pound, up $0.02
Crude Oil is at $54.72 a barrel, down $0.62
Bitcoin Investment Trust (GBTC) ended at $3.96, down $0.06
I hope this helps you prepare for the trading day. Make it a great one!
Todd Mitchell
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