Bears Trying To Hold On

U.S. markets were nervous to start the week as Wall Street prepares for a Fed announcement with a possible government shutdown looming by Friday if another spending agreement isn’t reached. The news cycle will likely keep volatility heightened with economic reports throughout the week also swaying market action.

The Nasdaq tumbled 1.8% after testing an intraday low of 7,285 while closing above the 7,300 level and holding its 50-day moving average. The Russell 2000 stumbled 1% while tapping a low of 1,553 to breach its 50-day moving average but a level that held into the closing bell.

The Dow dropped 1.4% after bottoming at 24,453 to close below its 100-day moving average and a level that was breached but held earlier this month. The S&P 500 also sank 1.4% while testing a low of 2,694 while holding the 2,700 level and its 100-day moving average into the close.

Technology tanked 2% and Health Care got hammered for 1.6%. Energy gave back 1.5% and Materials melted 1.4%. There was no sector strength and a slightly bearish signal for the session.

Dr Pepper Snapple (DPS) upgraded to Outperform from Sector Perform at RBC Capital
Oshkosh (OSK) upgraded to Hold from Sell at Deutsche Bank
Unilever (UL) upgraded to Neutral from Sell at Goldman Sachs

AmeriGas (APU) were downgraded to Underweight from Neutral at JPMorgan GrubHub (GRUB) downgraded to Hold from Buy at Stifel
Zoetis (ZTS) downgraded to Equal Weight from Overweight at Morgan Stanley

Tuesday’s scheduled earnings (EST):
Before the open: Affimed (AFMD), Children’s Place (PLCE), Duluth Holdings (DLTH), Elbit Systems (ESLT), LexinFintech Holdings (LX)
After the close: AAR (AIR), DXP Enterprises (DXPE), FedEx (FDX), Laureate Education (LAUR), Steelcase (SCS), UQM Technologies (UQM)

Tuesday’s economic reports (EST):
FOMC Meeting Begins
Redbook – 8:55am

Gold closed at $1,317.80 an ounce, up $5.50
Silver closed at $16.33 an ounce, up $0.05
Copper finished at $3.08 a pound, down $0.03
Crude Oil closed at $62.18 a barrel, down $0.07
Bitcoin Investment Trust (GBTC) settled at $13.60 down $0.63

Make it a great day!

Todd Mitchell