Market Mixed on Geopolitical Concerns

August 17, 2021 By: Todd Mitchell
The stock market recovered from its opening losses to end mixed on Monday as Wall Street overlooked geopolitical and ongoing covid concerns. The chaos in Afghanistan and disappointing economic news out of China weighed further on global markets with the late day rebound here at home sending the broader market and the blue-chips higher. 
 
Tech and the small-caps struggled but held key levels of support while recouping some of their losses. Meanwhile, volatility edged higher for the first time in four sessions but held a key level of resistance despite the choppiness.
 
The Dow traded to a late day record high of 35,631 before closing at 35,625 (+0.3%). Unchartered territory and new resistance at 35,750 was challenged but held. A move above this level would be an ongoing bullish development for continued strength towards 36,000.
     
The S&P 500 tested an all-time high of 4,480 while ending at 4,479 (+0.3%). Fresh and key resistance at 4,475 was cleared and held. Continued closes above this level would likely suggest additional momentum towards 4,500-4,525.
    
The Nasdaq fell to an opening low of 14,610 before settling at 14,793 (-0.2%). Current and upper support at 14,650-14,500 was breached but held. A close below the latter and the 50-day moving average would signal risk towards 14,350-14,200.
    
The Russell 2000 finished at 2,203 (-0.9%) with the morning low reaching 2,192. Upper support at 2,200-2,175 was tripped but held. A move below the latter would suggest a retest towards 2,150-2,125 with the July 19th low at 2,107. Below is a chart of the IWM.
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ANALYST UPGRADES/DOWNGRADES

Children's Place (PLCE) upgraded to Buy from Neutral at B. Riley
PG&E (PCG) upgraded to Outperform from Sector Perform at RBC Capital
Sonos (SONO) upgraded to Buy from Hold at Jefferies

Chipotle (CMG) downgraded to Outperform from Strong Buy at Raymond James
Ecolab (ECL) downgraded to In Line from Outperform at Evercore ISI
South State (SSB) downgraded to Equal Weight from Overweight at Stephens

TUESDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: Applied Industrial Technologies (AIT), Consolidated Water (CWCO), Eneti (NETI), GDS Holdings (GDS), Home Depot (HD), Just Eat Takeaway.com (GRUB), MariMed (MRMD), Outbrain (OB), Premier (PINC), Sea Limited (SE), Walmart (WMT)

After the close: Agilent Technologies (A), Best (BEST), Cree (CREE), Harbor Custom Development (HCDI), Instructure (INST), Jack Henry & Associates (JKHY), Krispy Kreme (DNUT), La-Z-Boy (LZB), Noah Holdings (NOAH), QuickLogic (QUIK), VTEX Commerce Cloud Solutions (VTEK)

TUESDAY'S ECONOMIC NEWS
Retail Inventories - 8:30am
Industrial Production - 9:15am
Business Inventories -10:00am
NAHB Housing Market Index -
10:00am

METALS/ OIL
Gold closed at $1,789.80 an ounce, up $11.60
Silver settled at $23.79  an ounce, up $0.01
Copper finished at $4.33 a pound, down $0.06
Crude Oil was at $67.47 a barrel, down $0.53
Bitcoin Investment Trust (GBTC) ended at $37.94  ​down $0.43

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

 Todd Mitchell

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