Dow, S&P 500 Post Weekly Gains

March 28, 2021 By: Todd Mitchell

The stock market closed lower on Thursday as another spike in Treasury yields and a weaker-than-expected jobs report weighed on sentiment. Specifically, the 10-year Treasury yield rose to a 14-month peak of 1.74% while initial jobless claims jumped to 770,000 versus forecasts for a print of 700,000.

Despite the disappointment and higher yields, the blue-chips managed to set a fresh intraday all-time high but succumbed to the overall selling pressure. Meanwhile, volatility trended higher after failing to hold a key level of resistance.

The Dow tapped an intraday all-time high of 33,227 before settling in the red at 32,862 (-0.5%). Uncharted territory and lower resistance at 33,250-33,500 was challenged and held. A move above the latter would indicate additional momentum towards 33,750-34,000.

The S&P 500 ended at 3,915 (-1.5%) after testing a low of 3,910. Current and upper support at 3,925-3,900 failed to hold. A close below the latter would suggest additional weakness towards 3,875-3,850 and the 50-day moving average.

The Russell 2000 finished at 2,267 (-2.9%) with the late day bottom reaching 2,262. Fresh and upper support at 2,275-2,250 was breached and failed to hold. A close below the latter would likely lead to a further pullback towards 2,225-2,200 and the 50-day moving average. 

The Nasdaq hit an afternoon low of 13,101 while closing at 13,116 (-3%) and back below its 50-day moving average. Prior and upper support at 13,250-13,100 was breached and failed to hold. A drop below the latter would signal a retest towards 13,000-12,850.

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ANALYST UPGRADES/DOWNGRADES

Agilent (A) upgraded to Buy from Neutral at CitiCarnival (CCL) upgraded to Buy from Neutral at UBSUpstart (UPST) upgraded to Outperform from Market Perform at JMP SecuritiesAdient (ADNT) downgraded to Underweight from Equal Weight at Morgan StanleyLumentum (LITE) downgraded to Neutral from Buy at RosenblattPinduoduo (PDD) downgraded to Neutral from Outperform at Macquarie

FRIDAY’S EARNINGS ANNOUNCEMENTS Before the open: Celsion (CLSN), Embraer (ERJ), LightInTheBox Holding (LITB), Tarena International (TEDU), Wireless Telecom Group (WTT)After the close: ​​None

THURSDAY’S ECONOMIC NEWSBaker-Hughes Rig Count – 1:00pm

METALS/ OILGold closed at $1,732.50 an ounce,  up $5.40Silver settled at $26.35 an ounce, up $0.29Copper finished at $4.11 a pound, down $0.01Crude Oil was at $59.53 a barrel, down $5.02Bitcoin Investment Trust (GBTC) ended at $50.81 down $1.18

I hope this helps you prepare for the trading day. Make it a great one!

Todd Mitchell

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