Bears Get Weekly Win of Friday Pullback

MARKET SUMMARY
U.S. markets suffered steep losses on Friday to erase weekly gains following another round of tough tariff talk ahead of the open. President Trump is considering whether to add tariffs on another $100 billion worth of Chinese goods as punishment for China’s reciprocal tariffs on $50 billion of U.S. goods. The market weakened further following a speech from Fed chair Jerome Powell, who said the U.S. budget was on an unsustainable course and the Fed should stay on a patient path of rate hikes.

The Nasdaq tumbled 2.3% after trading to an intraday low of 7,877 while closing back below the 7,000 level for the fifth time in 10 sessions. The Russell 2000 stumbled 1.9% following the back test to 1,502 while holding crucial support at the 1,500 level.

For the week, the Nasdaq was lower by 2.1% while the Russell 2000 was off 1.1% with both indexes currently below their 100-day moving averages.

The Dow tanked 2.3% after testing a low of 23,738 while closing back below the 24,000 level for the first time in four sessions. The S&P 500 sank 2.1% after tapping a low of 2,586 but closed above the 2,600 level for the eighth time in nine sessions.

The Dow was down 0.7% for the week while the S&P 500 fell 1.4%. Both indexes remain below their 100-day moving averages with the 50-day moving averages on track to breach these levels. This would form a mini-death cross and is typically a bearish signal.

ANALYST UPGRADES / DOWNGRADES
Halyard Health (HYH) upgraded to Overweight from Sector Weight at KeyBanc Universal Display (OLED) upgraded to Outperform from Perform at Oppenheimer
Valeant (VRX) upgraded to Neutral from Underperform at Mizuho

Incyte (INCY) downgraded to Neutral from Buy at Guggenheim
Ormat Technologies (ORA) downgraded to Perform from Outperform at Oppenheimer
Xilinx (XLNX) downgraded to Underweight from Neutral at JPMorgan

EARNINGS
Monday’s earnings:
No major announcements. First-quarter earnings season starts on Tuesday.

UPCOMING ECONOMIC NEWS
Monday’s economic reports (EST):
TD Ameritrade IMX – 12:30pm

METALS / OIL
Gold closed at $1,336.10 an ounce, up $7.60
Silver closed at $16.36 an ounce, up $0.01
Copper finished at $3.05 a pound, down $0.02
Crude Oil closed at $61.95 a barrel, down $1.59
Bitcoin Investment Trust (GBTC) settled at $10.55 down $0.46

Make it a great day!

Todd Mitchell

QUOTE OF THE DAY