Fed Speak Soothes Wall Street

August 30, 2021 By: Todd Mitchell

The stock market was mixed on Thursday with the broader market and Tech showing strength as new claims for unemployment benefits fell to a 17-month low. Initial claims for state unemployment benefits fell 29,000 to 348,000 versus forecasts for a print of 363,000.

It represented the fourth-straight weekly decline while sending claims to their lowest level since mid-March 2020. The four-week moving average fell 19,000 to 377,750, also a 17-month low. The news wasn’t much help for the blue-chips and the small-caps with the latter falling for the sixth-straight session.

The S&P 500 settled at 4,405 (+0.1%) after trading to an intraday high of 4,418. Key resistance at 4,425 was challenged but held. A move back above this level would suggest a possible retest towards 4,400-4,475 with the recent all-time peak at 4,480.

The Nasdaq tapped a midday high of 14,610 while ending at 14,541 (+0.1%). Fresh and lower resistance at 14,650-14,850 was also challenged but held. A close above the latter and the prior Monday’s record high of 14,890 would be a bullish signal for a run towards 15,000-15,150.

The Dow tapped a low of 34,690 before finishing at 34,894 (-0.2%). Key support at 34,750 and the 50-day moving average were breached but levels that held. A close below the latter would be a bearish development for additional weakness towards 34,500-34,250 and levels from mid-July.

The Russell 2000 tested a low of 2,122 while closing at 2,132 (-1.2%). Prior and upper support from mid-July at 2,125-2,100 was breached but held on the close back below the 200-day moving average. A drop below the 2,100 level and the July low at 2,107 would signal a further slide towards 2,075-2,050 and levels from late March. 

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ANALYST UPGRADES/DOWNGRADES

Apellis (APLS) upgraded to Outperform from Neutral at WedbushBill.com (BILL) upgraded to Buy from Hold at JefferiesW. R. Berkley (WRB) upgraded to Neutral from Underperform at BofANvidia (NVDA) downgraded to Sell from Hold at Summit InsightsSea Limited (SE) downgraded to Outperform from Buy at CLSAToro Company (TTC) downgraded to Neutral from Outperform at Baird

FRIDAY’S EARNINGS ANNOUNCEMENTS Before the open: Buckle (BKE), Deere & Company (DE), Foot Locker (FL), RLX Technology (RLX)

After the close: None

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

METALS/ OILGold closed at $1,783.10 an ounce, down $1.30Silver settled at $23.23  an ounce, down $0.19Copper finished at $4.04 a pound, down $0.08Crude Oil was at $64.04 a barrel, down $0.62Bitcoin Investment Trust (GBTC) ended at $37.49  ​up $2.16

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

Todd Mitchell

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