U.S. markets finished lower on Friday as weakness in the blue-chips and disappointing comments from Fed officials weighed on the major indexes. Developments from overseas concerning Brexit and soft economic news out of China also hindered momentum.
The overall market pullback overshadowed better-than-expected earnings ahead of the open and comes ahead of a flurry of results over the next couple of weeks and the height of 3Q earnings. Near-term support levels held with volatility spiking before holding a key level of resistance.
The Dow dropped 1% after trading in the red throughout the session while while closing on the session low of 26,770. Near-term and upper support at 26,750-26,500 was breached but held with a close below the latter and the 50-day moving average leading to a possible retest towards 26,250-26,000 and the 200-day moving average.
The Nasdaq sank 0.8% following the midday pullback to 8,045. Upper support at 8,100-8,050 failed to hold with a close below the latter getting 8,000-7,950 and the 50-day moving average back in play.
The S&P 500 traded exactly to the 3,000 level shortly after the open before before falling 0.4% and testing an intraday low of 2,976. Near-term and upper support at 2,975-2,950 held with a close below the latter and the 50-day moving average opening up risk towards 2,925-2,900.
The Russell 2000 was lower by 0.4% after tapping an afternoon low of 1,525. Current and upper support at 1,530-1,515 and the 200-day moving average was breached but held with a move below the latter and the 50-day moving average back signaling another retest towards the 1,500 level.
For the week, the Russell 2000 surged 1.6%. The S&P 500 added 0.5% and the Nasdaq was up 0.4%. The Dow dipped 0.2%.
Real Estate was the strongest sector after soaring 1% while Utilities and Financials advanced 0.3%. Communication Services and Technology were the weakest sectors after sinking 1.2% and 1%, respectively.
For the week, the best performing sectors were Communication Services (3.5%), Healthcare (3.3%), and Industrials (3%). Utilities (-0.9%) and Consumer Staples (-0.5%) were the only sectors that closed lower.
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Altria Group (MO) upgraded to Neutral from Sell at CitiSnap (SNAP) upgraded to Buy from Neutral at BofA/MerrillWaste Connections (WCN) upgraded to Overweight from Sector Weight at KeyBanc
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MONDAY’S EARNINGS ANNOUNCEMENTS Before the open: A Bank of Marin Bancorp (BMRC), Community Bank Systems (CBU), Halliburton (HAL), HomeStreet (HMST), Lennox International (LII), Old National Bancorp (ONB), PetMed Express (PETS), SAP (SAP)After the close: American Campus Communications (ACC), BancorpSouth (BXS), Cadence Design Systems (CDNS), Celanese (CE), Del Taco Restaurants (TACO), Enterprise Financials Services (EFSC), FB Financial (FBK), HealthStream (HSTM), Hexcel (HXL), LogiTech International (LOGI), SmartFinancial (SMBK), TD Ameritrade (AMTD), Veritex Holdings (VRTX), Washington Trust (WASH), Zions Bancorporation (ZION)
MONDAY’S ECONOMIC NEWSThere are no major reports scheduled
METALS / OILGold closed at $1,494.10 an ounce,