U.S. markets showed strength throughout much of Thursday’s action following a goldilocks GDP report and a stable jobless claims number. Near-term resistance levels held ahead of the late day weakness that came in the final hour of trading.
The major indexes held the majority of their gains with the small-caps being the weak link. Volatility relaxed after closing above a key support level but remains slightly elevated heading into the final trading day of the month.
The Nasdaq rose 0.3% following the morning run to 7,595. Prior and lower resistance at 7,600-7,650 was challenged but held with a close above the latter getting 7,700-7,750 back in play.
The S&P 500 climbed 0.2% after tapping a first half high of 2,799. Key resistance at 2,800 held with a close back above this level signaling possible strength towards 2,825-2,850.
The Dow also added 0.2% following the intraday run to 25,218. Prior and lower resistance at 25,250-25,500 held with a close above the latter and the 200-day moving average being a more bullish development.
The Russell 2000 fell 0.3% despite testing a morning peak of 1,500. Near-term and lower resistance at 1,500-1,515 was tapped but held with continued closes above these levels signaling a possible near-term bottom.
Consumer Discretionary led sector strength after rising 0.7%. Technology, Real Estate and Healthcare gained 0.6%.
Energy lead sector weakness after giving back 1.3%. Financials and uTilities rounded out the laggards with losses of 0.3% and 0.2%, respectively.
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Citi (C) upgraded to Buy from Neutral at Goldman SachsPenumbra (PEN) upgraded to Overweight from Neutral at JPMorgan Zynga (ZNGA) upgraded to Overweight from Equal Weight at Stephens
Canada Goose (GOOS) downgraded to Neutral from Buy at BofA/Merrill Teva (TEVA) double downgraded to Underperform from Buy at BofA/MerrillVerizon (VZ) downgraded to Neutral from Buy at UBS
FRIDAY’S EARNINGS ANNOUNCEMENTS Before the open (EST):Big Lots (BIG), Build-A-Bear Workshop (BBW), Conn’s (CONN), Genesco (GCO)After the close(EST):None
UPCOMING ECONOMIC NEWS Thursday’s economic reports (EST): Personal Income and Outlays – 8:30amChicago PMI – 9:45amConsumer Sentiment – 10:00amBaker-Hughes Rig Count – 1:00pm
METALS / OILGold closed at $1,292.40 an ounce, up $6.10Silver settled at $14.49 an ounce, up $0.08Copper finished at $2.65 a pound, down $0.01Crude Oil was at $56.52 a barrel, up $2.29Bitcoin Investment Trust (GBTC) ended at $11.63 unchanged
I hope this helps you prepare for the trading day. Make it a great one!
Todd Mitchell
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