Blue-Chips Slip On Weak Earnings

U.S. markets showed continued strength on positive trade developments but finished mixed for the session as earnings dragged down the blue-chips. President Trump’s trade representative briefed lawmakers to expect a negotiated North America Free Trade Agreement within three weeks with top negotiators expected to meet in Washington on Thursday and Friday. Volatility bubbled higher but remains under key resistance levels.

The Russell 2000 rose 0.4% after holding positive territory throughout the session while reaching an intraday peak of 1,592. The Nasdaq gained 0.2% after trading to a high of 7,319 while closing just below the 7,300 level.

The S&P 500 was up 0.1% after testing a high of 2,717 and holding the 2,700 level for the second-straight session. The Dow slipped 0.1% after trading in a 111-point range with the low tapping 24,721.

eBay (EBAY) upgraded to Overweight from Underweight at Morgan Stanley
First Solar (FSLR) upgraded to Buy from Neutral at BofA/Merrill
M&T Bank (MTB) upgraded to Neutral from Underperform at Baird

Altria Group (MO) downgraded to Neutral from Buy at Citi
Callaway Golf (ELY) downgraded to Neutral from Buy at DA Davidson
GrubHub (GRUB) downgraded to Equal Weight from Overweight at Morgan Stanley

Thursday’s earnings:
Before the open: Alliance Data Systems (ADS), BB&T (BBT), Chart Industries (GTLS), Danaher (DHR), Genuine Parts Company (GPC), KeyCorp (KEY), Novartis International (NVS), Nucor (NUE), Philip Morris (PM), Snap-On (SNA), Taiwan Semiconductor (TSM), Webster Financial (WBS)

After the close: Brandywine Realty Trust (BDN), Cherokee (CHKE), David’s Tea (DTEA), E*Trade Financial (ETFC), Limelight Networks (LLNW), Preferred Bank (PFBC), Rogers Communications (RCI), Sketchers (SKX), Werner Enterprises (WERN)

Thursday’s economic reports (EST):
Jobless Claims – 8:30am
Philadelphia Fed Business Outlook Survey – 8:30am
Bloomberg Consumer Comfort Index – 9:45am
Leading Indicators – 10:00am

Gold closed at $1353.50 an ounce, up $4.00
Silver closed at $17.25 an ounce, up $0.46
Copper finished at $3.15 a pound, up $0.08
Crude Oil closed at $68.83 a barrel, up $2.31
Bitcoin Investment Trust (GBTC) settled at $13.24 up $0.81

Make it a great day!

Todd Mitchell