U.S. markets wrapped up a solid week on Friday as Q2 GDP came in slightly firmer than expected at 2.1%. Earnings also surprised to the upside, with several of the biggest names in Technology posting better-than-expected numbers.
Concerning the trade front, National Economic Council Director Kudlow said the economy is poised for a strong second half of 2019, but he also warned that investors should not expect any grand deal with China this week. In any event, volatility settled back below key support with the major indexes posting gains for the 3rd time in 4 weeks.
The Russell 2000 rallied 1.1% after surging to a late day high of 1,581. Prior and upper resistance at 1,565-1,580 was cleared but held with continued closes above the latter getting 1,585-1,600 back in play.
The Nasdaq also advanced 1.1% following the run to 8,339 ahead of the closing bell and fresh all-time high. Fresh and lower resistance at 8,300-8,350 was cleared and held with additional hurdles at 8,425-8,500 on continued closes above the latter.
The S&P 500 rose 0.7% after trading to an intraday and record high of 3,027. Fresh and lower resistance at 3,025-3,050 was cleared and held on the 4th-straight close above the 3,000 level.
The Dow added 0.2% after trading in a 90-point range while reaching a peak of 27,192. Near-term and lower resistance at 27,250-27,500 was challenged but held with the all-time high at 27,398.
For the week, the Nasdaq surged 2.3% and the Russell 2000 rallied 2%. The S&P 500 jumped 1.7% while the Dow edged up 0.1%.
Communication Services led sector strength on Friday after zooming 2.9% while Consumer Staples and Financials were up of 0.7%. Energy and Industrials were the only sector laggards after falling -0.5% and -0.2%.
The best performing sectors for the week included Communication Services (4.3%), Financials (2.7%), Technology (2.4%) and Industrials (1.4%). Utilities (-0.7%) and Energy (-0.5%) were the only weekly laggards.
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MONDAY’S EARNINGS ANNOUNCEMENTS Before the open: Affiliated Managers Group (AMG), Booz Allen Hamilton (BAH), Cooper Tire & Rubber (CTB), Insperity (NSP), Mercury General (MCY), Opus Bank (OPB), Sanofi (SNY), Tower Semiconductor (TSEM), Vermilion Energy (VET)After the close: AppFolio (APPF), Beyond Meat (BYND), Chegg (CHGG), Del Taco Restaurants (TACO), Dish Network (DISH), Financial Institutions (FISI), Harmonic (HLIT), Illumina (ILMN), J&J Snack Foods (JJSF), Leggett & Platt (LEG), McDermott International (MDR), Nutrien (NTR), OneMain Holdings (OMF), QTS Realty Trust (QTS), Rambus (RMBS), SBA Communications (SBAC), Texas Roadhouse (TRTX), Trex (TREX), Vornado Realty Trust (VNO), Waste Connections (WCN)
UPCOMING ECONOMIC NEWSMonday’s economic reports (EST): Dallas Fed Manufacturing Survey – 10:30am
METALS / OILGold closed at $1,419.30 an ounce,