Bears Growl on Rate Hike


U.S. markets showed strength and traded to session highs ahead of Wednesday’s FOMC decision as the major indexes pushed prior resistance levels. As expected, the Fed raised interest rates by a quarter-point with the market weakening after the news.

The small-caps led the pullback but had traded mostly in the red throughout the session with the other major indexes failing to hold positive territory into the closing bell. Volatility stayed relaxed but held key support levels as cautious trading continues to give a neutral reading for the market.

The Dow dipped 0.4% despite trading to an intraday high of 26,606. Resistance at 26,600 held for the the 2nd-straight session with the close below the 26,400 level being a lightly bearish development.

The Nasdaq gave back 0.2% after making a second half run to 8,067. Lower resistance at 8,075-8,100 held with the close back below the 8,000 being a cautious signal.

The S&P 500 was down 0.3% following the intraday test to 2,931. Resistance at 2,920-2,925 held before the fade to support at 2,900 with the session low reaching 2,903.

The Russell 2000 sank 1% following the back-test to 1,690. Near-term and lower support at 1,700-1,690 held on the close below the 50-day moving average and was a slightly bearish development.

Communication Services led sector strength after gaining 0.4%. Healthcare and Consumer Discretionary added 0.2%.

Financial stumbled 1.2% to pace sector laggards. Real Estate and Energy tanked 1.1% and 1%, respectively.


IBM (IBM) upgraded to Buy from Neutral at UBS
GoPro (GPRO) upgraded to Outperform from Perform at Oppenheimer
Viacom (VIAB) upgraded to Buy from Neutral at B. Riley FBR
Cabot Oil & Gas (COG) downgraded to Equal Weight from Overweight at Morgan Stanley
Manhattan Associates (MANH) downgraded to Hold from Buy at SunTrust
Synchrony (SYF) were downgraded to Neutral from Buy at BofA/Merrill


Thursday’s earnings announcements (EST): 

Before the open: Accenture (ACN), Carnival (CCL), Conagra Brands (CAG), Ferrellgas Partners (FGP), McCormick & Company (MKC), Rite Aid (RAD), Scholastic (SCHL)
After the close: CalAmp (CAMP), Progress Software (PRGS)

Thursday’s economic reports (EST): 

​​Jobless Claims – 8:30am
Philadelphia Fed Business Outlook Survey – 8:30am
Existing Home Sales – 10:00am
Leading Indicators – 10:00am


Gold closed at $1,199.10 an ounce, down $0.06

Silver settled at $14.40 an ounce, down $0.09

Copper finished at $2.83 a pound, up $0.01

Crude Oil is at $72.04 barrel, down $0.24

Bitcoin Investment Trust (GBTC) ended at $8.03 down $0.02

   I hope this helps you prepare for tomorrow. Have a great evening.

   Todd Mitchell