Blue-Chips Close Below 24,000

U.S. markets showed strength on the open following solid earnings but quickly lost momentum within the first half-hour of action. The selling pressure accelerated during the afternoon and into the closing bell as the 10-year treasury yield officially hit 3%. This exasperated fears of money moving out of the market and into safer havens while pushing volatility above a key level of resistance.

The Dow dropped 1.7% after bottoming at 23,828 while closing below the 24,000 level for the first time in 11 sessions.

The S&P 500 stumbled 1.3% after testing a low of to 2,617 while holding 2,600 and a level that has held the majority of April. Both indexes came within 1% of breaching their 200-day moving averages.

The Nasdaq fell for the 4th-straight session after tumbling 1.7% on the fade to 6,961. The index has been holding 7,000 for 11th-straight sessions with a close below this level being a bearish development. The Russell 2000 gave back 0.6% following the backtest to 1,542 but was able to hold its 50-day moving average into the closing bell.


BP (BP) upgraded to Buy from Neutral at Goldman Sachs
Discovery (DISCA) upgraded to Buy from Hold at Deutsche Bank
Hasbro (HAS) upgraded to Buy from Neutral at Monness Crespi

Alcoa (AA) downgraded to Neutral from Buy at Citi
Dynagas (DLNG) downgraded to Underperform from Market Perform at Wells Fargo
Skyworks (SWKS) downgraded to Neutral from Buy at Mizuho

Wednesday’s earnings:
Before the open: Anthem (ANTM), Boeing (BA), Boston Scientific (BSX), Brink’s (BCO), Comcast (CMCSA), Dr Pepper Snapple (DPS), Evercore (EVR), General Dynamics (GD), Hess(HES), Ingersoll-Rand (IR), Norfolk Southern (NSC), Peabody Energy (BTU), Rockwell Automation (ROK), Silicon Laboratories (SLAB), T. Rowe Price Group (TROW), Tupperware (TUP), Twitter (TWTR), Viacom (VIA)

After the close: Advanced Medical Devices (AMD), AT&T (T), Boston Beer Company (SAM), Cheesecake Factory (CAKE), Citrix Systems (CTXS), eBay (EBAY), F5 Networks (FFIV), Ford Motor (F), Goldcorp (GG), Kaiser Aluminum (KALU), Las Vegas Sands (LVS), Legg Mason (LM), NetGear (NTGR), PayPal (PYPL), Public Storage (PSA), Qualcomm (QCOM), Raymond James Financial (RJF), ServiceNow (NOW), Ultra Clean Holdings (UCTT), Visa (V), Xilinx (XLNX)

Wednesday’s economic reports (EST):

MBA Mortgage Applications – 7:00am

Gold closed at $1,333.00 an ounce, up $9.00
Silver settled at $16.70 an ounce, up $0.11
Copper finished at $3.14 a pound, up $0.03
Crude Oil closed at $67.70 a barrel, down $1.23
Bitcoin Investment Trust (GBTC) settled at $16.88 up $1.63

Make it a great day!

Todd Mitchell