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.
TRADE OF THE DAY
ANALYST UPGRADES / DOWNGRADES
BP (BP) upgraded to Buy from Neutral at Goldman Sachs
Discovery (DISCAWealth Strength IndexDISCA is Extremely Up and trending Up) upgraded to Buy from Hold at Deutsche Bank
Hasbro (HASWealth Strength IndexHAS is Moderately Up and trending Up) 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 (SWKSWealth Strength IndexSWKS is Moderately Flat and trending Up) downgraded to Neutral from Buy at Mizuho
Before the open: Anthem (ANTM), Boeing (BA), Boston Scientific (BSX), Brink’s (BCO), Comcast (CMCSAWealth Strength IndexCMCSA is Extremely Up and trending Up), 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 (TWTRWealth Strength IndexTWTR is Moderately Down and trending Down), Viacom (VIA)
After the close: Advanced Medical Devices (AMD), AT&T (T), Boston Beer Company (SAM), Cheesecake Factory (CAKE), Citrix Systems (CTXSWealth Strength IndexCTXS is Moderately Up and trending Up), eBay (EBAYWealth Strength IndexEBAY is Moderately Up and trending Up), F5 Networks (FFIV), Ford Motor (F), Goldcorp (GG), Kaiser Aluminum (KALU), Las Vegas Sands (LVS), Legg Mason (LM), NetGear (NTGR), PayPal (PYPLWealth Strength IndexPYPL is Moderately Flat and trending Up), Public Storage (PSA), Qualcomm (QCOMWealth Strength IndexQCOM is Moderately Flat and trending Up), Raymond James Financial (RJF), ServiceNow (NOW), Ultra Clean Holdings (UCTT), Visa (V), Xilinx (XLNXWealth Strength IndexXLNX is Moderately Flat and trending Up)
UPCOMING ECONOMIC NEWS
Wednesday’s economic reports (EST):
MBA Mortgage Applications – 7:00am
METALS / OIL
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!