The stock market rebounded on Monday, with the broader market, the small-caps, and the blue-chips rising to end five-session losing streaks while Tech lagged after falling for the fourth-straight outing. Bullishness on the likely passage of a $3.5 trillion budget package helped sentiment, despite an expected proposal to raise the corporate tax rate to 26.5% from 21%.
Energy was the strongest sector after surging nearly 3% while Healthcare was the weakest after falling 0.6%. Meanwhile, volatility settled back below a key level of support despite kissing an intraday monthly high to remain in an overall four-month trading range.
The Dow closed at 34,869 (+0.8%) with the morning peak reaching 34,939. Fresh and lower resistance at 34,750-35,000 was cleared and held. A close above the latter and the 50-day moving average would indicate a possible near-term bottom with additional upside towards 35,250-35,500.
The Russell 2000 tested a midday high of 2,244 before ending at 2,240 (+0.6%). New and lower resistance at 2,250-2,275 was challenged but held on the close back above the 50-day moving average. A pop above the latter would suggest another run towards the 2,300 area. Below is a chart of the IWM.
The S&P 500 finished at 4,468 (+0.2%) after tagging a high of 4,492. Prior and lower resistance at 4,475-4,500 was breached but held. A move above the latter would indicate additional strength towards 4,525-4,550 with this month’s all-time peak at 4,545.
The Nasdaq settled at 15,105 (-0.1%) with the intraday low hitting 15,030. Key support at 15,000 was approached but held. A drop below this level would signal additional weakness towards 14,850-14,700 and the 50-day moving average.
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Dell Technologies (DELL) upgraded to Conviction Buy from Buy at Goldman Sachs
MGM Resorts (MGM) upgraded to Outperform from Market Perform at Bernstein
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General Mills (GIS) downgraded to Neutral from Outperform at Credit Suisse
Nike (NKE) downgraded to Neutral from Buy at BTIG
TUESDAY'S EARNINGS ANNOUNCEMENTS
Before the open: AstroNova (ALOT), Core & Main (CNM), FuelCell Energy (FCEL), MYT Netherlands Parent (MYTE)
After the close: Aspen Group (ASPU), Davids Tea (DTEA), European Wax Center (EWCZ), High Tide (HITI), Ibex (IBEX), Kaspien Holdings (KSPN), SkillSoft (SKIL)
TUESDAY'S ECONOMIC NEWS
NFIB Small Business Optimism Index - 6:00am
Consumer Price Index - 8:30am
METALS/ OIL
Gold closed at $1,794.40 an ounce, up $2.30
Silver settled at $23.80 an ounce, down $0.10
Copper finished at $4.37 a pound, down $0.08
Crude Oil was at $70.67 a barrel, up $0.96
Bitcoin Investment Trust (GBTC) ended at $35.73 down $1.07
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