Bears Crack Major Support

U.S. markets opened in negative territory and fell below major support on Friday with the indexes suffering their biggest one-day pullbacks in more than a year and posting the steepest weekly losses in nearly two years. The weakness was attributed to higher bond yields, global profit-taking and disappointing quarterly earnings from a few of the biggest names in the Tech sector.

The Dow dropped 2.5% after tapping a low of 25,490 while closing below the 26,000 level for the first time in 13 sessions. The blue-chip index declined 4.1% over the week as all 30 Dow components closed in the red on Friday.

The S&P 500 sank 2.1% after trading down to 2,759 and closing below the 2,800 level for the first time in 11 sessions. Friday’s decline was the biggest one-day drop since September 2016 and widened the weekly loss to 3.9%.

The Nasdaq tanked 2% after kissing 7,238 late in the session while closing below the 7,300 level for the first time in 11 trading days. The index was down 3.5% over the week.

The Russell 2000 fell 2.1% after testing a low of 1,547 while closing below its 50-day moving average for the first time since last November. The weekly loss was just over 4% with the index just 12 points away from giving up all of its 2018 gains.


Mondelez (MDLZWealth Strength IndexMDLZ is Extremely Flat and trending Up) upgraded to Buy from Hold at Societe Generale
Huntington Ingalls (HII) upgraded to Outperform from Market Perform at Cowen Sherwin-Williams (SHW) upgraded to Buy from Neutral at Seaport Global

Apple (AAPLWealth Strength IndexAAPL is Moderately Up and trending Up) was downgraded to Market Perform from Outperform at Bernstein Hershey (HSY) downgraded to Neutral from Outperform at Credit Suisse
Tractor Supply (TSCOWealth Strength IndexTSCO is Moderately Down and trending Down) downgraded to Underperform from Buy at BofA/Merrill

Monday’s scheduled earnings include:
Before the open: Arconic (ARNC), Booz Allen Hamilton (BAH), Bristol-Myers (BMY), Church & Dwight (CHD), Hess (HES), ON Semiconductor (ON), Sysco (SYY)
After the close: Badger Meter (BMI), Cirrus Logic (CRUS), Fabrinet (FTNT), GW Pharmaceuticals (GWPH), Leggett & Platt (LEG), Nutrien (NTR), Premier (PINC), Skyworks Solutions (SWKSWealth Strength IndexSWKS is Extremely Flat and trending Down)

Monday’s economic reports (EST):
PMI Services Index – 9:45am
ISM Non-Manufacturing Index – 10:00am
TD Ameritrade IMX – 12:30pm

Gold closed at $1,337.30 an ounce, down $10.60
Silver settled at $16.71 an ounce, down $0.45
Copper finished at $3.18 a pound, down $0.02
Crude Oil closed at $65.06 a barrel, down $0.74
Bitcoin Investment Trust (GBTC) settled at $12.00, down $11.00

Make it a great day!

Todd Mitchell