Bears Make An Appearance 05-15-2018

U.S. markets traded in negative territory throughout the majority of Tuesday’s session with the weakness attributed to a rise in interest rates and mixed economic news. The selling pressure caused a slight spike in volatility with near-term resistance holding and the major indexes improving off their worst levels into the closing bell.

The Dow dropped 0.8% after testing a low of 24,629 to snap an 8-session win streak. The S&P 500 sank 0.7% to snap a 4-session win streak while trading to a low of 2,701. Both indexes remain roughly 1% above their 50-day moving averages.

The Nasdaq was lower for the 2nd time in 3 sessions after falling 0.8% and making a back-test to 7,320. The Russell 2000 was flat, literally, after trading in an 11-point range while holding the 1,600 level.


Gap (GPS) upgraded to Outperform from Market Perform at Telsey Advisory
CBS (CBS) upgraded to Outperform from Market Perform at Bernstein
Valeant (VRX) upgraded to Buy from Neutral at Mizuho

Ford (F) downgraded to Neutral from Overweight at Piper Jaffray
ClearOne (CLRO) downgraded to Neutral from Buy at B. Riley FBR
Travelport (TVPT) downgraded to Neutral on valuation at BofA/Merrill

Wednesday’s Earnings:
Before the open: Azz (AZZ), CPI Areostructures (CVU), Eagle Materials (EXP), Home Depot (HD), iPic Entertainment (IPIC), Kamada (KMDA), National Vision Holdings (EYE), Pointer Telocation (PNTR), Sorl Auto Parts (SORL), Virtusa (VRTU)
After the close: Boot Barn Holdings (BARN), DLH Holdings (DLHC), GrowGeneration (GRWG), Limbach Holdings (LMB), NetList (NLST), PerIQ (PETQ), Sunworks (SUNW)

Wednesday’s economic reports (EST):
MBA Mortgage Applications – 7:00am
Housing Starts – 8:30am
Industrial Production – 9:15am
Atlantic Fed Business Inflation Expectations – 10:00am

Gold closed at $1,290.30 an ounce, down $27.90
Silver settled at $16.27 an ounce, down $0.38
Copper finished at $3.05 a pound, down $0.04
Crude Oil is at $70.93 a barrel, down $0.21
Bitcoin Investment Trust (GBTC) ended at $14.25 down $0.25

Make it a great day!
Todd Mitchell