Blue-Chips Trigger Fresh All-Time

U.S. markets showed slight weakness on Tuesday’s open as relief over a new trade agreement in North America continues to benefit blue-chip stocks more than small-caps. Economic news was light as the rebound on Fed speak took center stage throughout the session.

The blue-chips managed to hold their gains while the other major indexes struggled with momentum throughout session. The mixed finish wasn’t much of a surprise as volatility stayed range bound ahead of 3Q earnings season that begins next week.

The Dow rose 0.5% while trading to a fresh all-time intraday high of 26,824. Fresh and lower resistance at 26,800-27,000 held with continued closes above the former remaining a bullish signal.

The S&P 500 slipped a point, or 0.01% despite making an intraday push to 2,931. The fade to 2,919 afterwards held near-term support at 2,910-2,900 with a move below the latter being a slightly bearish flag.

The Nasdaq was lower by 0.5% following the back test to 7,983. Upper support at 8,000-7,950 failed to hold by a half-point with a close below the latter being a slightly bearish development.

The Russell 2000 sank 1% after making a steady decline to 1,653 into the closing bell. July and fresh support at 1,650 held with risk to 1,630-1,625 on move below this level.

Utilities led sector strength after jumping 1.4%. Communication Staples and Materials gained 0.6% and 0.4%, respectively.

Consumer Discretionary was the weakest sectors after sinking 1.4% while Real Estate decline 0.3%. The Financials finished flat after being down most of the session and a sector that has been struggling.

ANALYST UPGRADES/DOWNGRADES

At Home Group (HOME) upgraded to Buy from Neutral at Goldman Sachs
Nestle (NSRGY) upgraded to Buy from Hold at Jefferies
Urban Outfitters (URBN) upgraded to Buy from Neutral at B. Riley FBR
Ambev (ABEV) double downgraded to Sell from Buy at UBS
Schlumberger (SLB) downgraded to Hold from Buy at Tudor Pickering
Unilever (UNUL) downgraded to Hold from Buy at Jefferies

EARNINGS

Wednesday’s earnings announcements (EST): 

Before the open:​​Acuity Brands (AYI), Lennar (LEN), RPM International (RPM)
After the close:Pier 1 Imports (PIR), Resources Connection (RECN), Synnex (SNX)

UPCOMING ECONOMIC NEWS 
Wednesday’s economic reports (EST): 

MBA Mortgage Applications – 7:00am
ADP Employment Report – 8:15am
PMI Services Index – 9:45am
ISM Non-Manufacturing Index – 10:00am

METALS / OIL

Gold closed at $1,207.00 an ounce,up $15.30

Silversettled at $14.69 an ounce,up $0.18

Copper finished at $2.81 a pound,up $0.02

Crude Oil is at $75.09 barrel,down $0.40

Bitcoin Investment Trust (GBTC)ended at $7.40 down $0.33

I hope this helps you prepare for tomorrow. Have a great evening.

   Todd Mitchell

QUOTE OF THE DAY