Bears Keep Pressure On


U.S. markets showed continued weakness to start September as the next round of tariffs on China looms and turbulence in the overseas markets continue to worry Wall Street. Tech and social media stocks underperformed after another inquisition by Congress over foreign influence in politics ahead of mid-term elections.

Near-term support levels were stretched, while holding for the most part, with the blue-chips showing some strength. Volatility remains slightly elevated but held key resistance for a 2nd-straight session.

The Nasdaq plummeted 1.2% after testing an intraday low of 7,962. Lower support at 8,050-8,000 failed to hold by a nickel with a close below 7,950 likely leading to additional selling pressure.

The Russell 2000 gave back 0.3% following the intraday pullback to of 1,713. Near-term support at 1,720-1,700 was split but held with a close below the latter being a very bearish signal.

The S&P 500 was also off 0.3% after making a backtest to 2,876. Lower support at 2,880-2,875 held with risk to 2,850 if breached.

The Dow snapped a 3-session slide after rising 0.1% while trading to an intraday high of 26,011. Lower resistance at 26,000-26,200 held with a close above the latter signaling a possible near-term bottom and being a more bullish development.

Utilities and Consumer Staples rallied 1.4% and 1.2%, respectively, to pace sector leaders. Materials and Industrials were higher by 0.7%.

Consumer Services and Technology were down 1.3% to lead sector weakness. Consumer Discretionary slid 1.1%.


Anthem (ANTM) upgraded to Overweight from Equal Weight at Morgan Stanley
GasLog (GLOG) upgraded to Buy from Hold at DNB Markets
PerkinElmer (PKI) upgraded to Equal Weight from Underweight at Barclays
CSXWealth Strength IndexAAPL is Extremely Up and trending Up (CSXWealth Strength IndexAAPL is Extremely Up and trending Up) downgraded to Market Perform from Outperform at BMO Capital
Myriad Genetics (MYGN) downgraded to Underweight from Equal Weight at Barclays
Vail Resorts (MTN) downgraded to Neutral from Outperform at Macquarie


Thursday’s earnings announcements (EST): 

Before the open: Dell Technologies (DVMT), FuelCell Energy (FCEL), G-III Apparel Group (GIII), Lands’ End (LE), Malibu Boats (MBUU), Navistar International (NAV), ReneSola (SOL), Secoo Holdings (SECO)
After the close: ABM Industries (ABM), Broadcom (AVGOWealth Strength IndexAAPL is Extremely Up and trending Up), Domo (DOMO), Finisar (FNSR), FiveBelow (FIVE), GameStop (GME), Korn/ Ferry International (KFY), Marvell Technology (MRVL), Okta (OKTA), Palo Alto Networks (PANW), Zumiez (ZUMZ)

Thursday’s economic reports (EST): 

Challenger Job-Cut Report – 7:30am
ADPWealth Strength IndexAAPL is Extremely Up and trending Up Employment Report – 8:15am
Jobless Claims – 8:30am
Productivity and Costs – 8:30am
PMI Services Index – 9:45am
Factory Orders – 10:00am
ISM Non-Manufacturing Index – 10:00am


Gold closed at $1,201.30 an ounce, up $2.20

Silver settled at $14.12 an ounce, up $0.06

Copper finished at $2.61 a pound, up $0.01

Crude Oil is at $68.65 barrel, down $1.22

Bitcoin Investment Trust (GBTC) ended at $8.85 down $0.65

Make it a great day!

   Todd Mitchell