U.S. markets opened Friday’s session lower with downside momentum into the closing bell despite encouraging trade news. China said it would suspend an additional tariff on U.S. autos while also confirming it would reduce a 40% charge on U.S. auto imports to 15% for 90 days.
Global growth concerns and slightly disappointing economic news overshadowed the positive development with the major indexes giving up their gains for the week. The pullback also pushed the overall market into correction territory for the first time since March 2016.
The Dow tanked 2% following the pullback to 24,033. Upper support at 24,000-23,800 held with a move below the latter signaling additional weakness.
The S&P 500 sank 1.9% after testing a 2,593. Fresh support is at 2,575-2,550 on the close below the 2,600 level with the recent monthly low at 2,583.
For the week, the Dow and the S&P 500 fell 1.2%.
The Nasdaq tumbled 2.3% following the backtest to 6,898. November and upper support at 6,900-6,850 held with a close below the latter likely leading to additional selling pressure.
The Russell 2000 dropped 1.5% after testing a fresh 52-week low of 1,407. September 2017 support at 1,400 is now in play with a close below this level signaling additional weakness.
The Russell 2000 stumbled 2.8% for the week while the Nasdaq was down 0.8%.
There was no sectors that showed strength on Friday. Healthcare led sector weakness after declining 3.4% while Technology was down 2.5%.
For the week, Utilities and Communication Services were higher by 0.6% and 0.5%, respectively. Financials and Energy were the weakest sector with declines of 3.5% and 3.1%, respectively.
Bausch Health (BHC) upgraded to Buy from Neutral at H.C. Wainwright
Dollar Tree (DLTRWealth Strength IndexDLTR is Moderately Flat and trending Down) upgraded to Outperform from Market Perform at Bernstein
Regeneron (REGNWealth Strength IndexREGN is Moderately Flat and trending Down) upgraded to Conviction Buy from Neutral at Goldman Sachs
Beacon Roofing (BECN) downgraded to Neutral from Outperform at Wedbush
Cisco (CSCOWealth Strength IndexCSCO is Moderately Flat and trending Down) downgraded to Neutral from Buy at Nomura Instinet
Walgreens Boots Alliance (WBAWealth Strength IndexWBA is Flat and trending Down) downgraded to Sell from Neutral at Goldman Sachs
Monday’s earnings announcements (EST):
Before the open: China Online Education (COE)
After the close: Champions Oncology (CSBR), Heico (HEI), Lakeland Industries (LAKE), Oracle (ORCL), Red Hat (RHT)
UPCOMING ECONOMIC NEWS
Monday’s Economic Reports (EST):
Empire State Manufacturing Survey – 8:30am
Housing Market Index – 10:00am
METALS / OIL
Gold closed at $1,241.40 an ounce, down $6.00
Silver settled at $14.64 an ounce, down $0.21
Copper finished at $2.76 a pound, down $0.01
Crude Oil is at $51.23 a barrel, down $1.35
Bitcoin Investment Trust (GBTC) ended at $3.84
I hope this helps you prepare for the trading day. Make it a great one!