50-Day MA’s Back in Play 04-22-2018

U.S. markets were weak throughout Friday’s session as Wall Street worried over the rise of the yield in the 10-year Treasury note, currently at 2.96%, and representing the highest levels since 2014. Although the major indexes extended their weekly win streak to two-straight, the close below key support levels was a slightly bearish development heading into the peak of 1Q earnings season.

The Dow extended its losing streak to three-straight sessions after giving back 0.8% while trading to an intraday low of 24,375. The S&P 500 fell 0.9% after trading down to 2,660 to end the week with back-to-back losses.

For the week, the S&P 500 was up 0.5% while the Dow gained 0.4%. However, both indexes closed below their 50-day moving averages on Friday after challenging their 100-day moving averages midweek.

The Nasdaq sank 1.3% after trading to an intraday low of 7,123 while closing back below its 50-day average but holding its 100-day moving average. The Russell 2000 dropped 0.6% following the back test to 1,561 but is slightly more than 1% above its 50/100-day moving averages which remain in solid uptrends.

The Russell 2000 rallied 1% for the week while the Nasdaq added 0.6%.

Twitter (TWTRWealth Strength IndexTWTR is Moderately Down and trending Down) upgraded to Buy from Neutral at MKM Partners
Macerich (MAC) upgraded to Outperform from Market Perform at BMO Capital
UGI Corporation (UGI) upgraded to Buy from Neutral at UBS

Procter & Gamble (PG) downgraded to Neutral from Buy at BofA/Merrill
Skechers (SKX) downgraded to Neutral from Outperform at Wedbush
Tyson Foods (TSN) downgraded to Hold from Buy at Vertical Group.

Monday’s earnings:
Before the open: Air Group (ALK), Bank of Hawaii (BOH), Halliburton (HAL), Hasbro (HASWealth Strength IndexHAS is Moderately Up and trending Up), Kimberly-Clark (KMB), Lennox International (LII), Opus Bank (OPB), Scorpio Bulkers (SALT), Tennant (TNC)

After the close: Alphabet (GOOGLWealth Strength IndexGOOGL is Extremely Flat and trending Up), Banner (BANR), Cadence Design Systems (CDNS), Crane (CR), First Bank (FRBA), Hexcel (HXL), Moelis & Company (MC), Owens-Illinois (OI), Rush Enterprises (RUSHA), Sun Communities (SUI), TD Ameritrade (AMTD), Whirlpool (WHR)

Monday’s economic reports (EST):
Chicago Fed National Activity Index – 8:30am
PMI Composite Flash – 10:00am
Existing Home Sales – 10:00am

Gold closed at $1338.30 an ounce, down $10.50
Silver closed at $17.16 an ounce, down $0.08
Copper finished at $3.13 a pound, unchanged
Crude Oil closed at $68.06 a barrel, down $0.23
Bitcoin Investment Trust (GBTC) settled at $14.85 up $1.20

Make it a great day!

Todd Mitchell