Bulls Continue to Push Blue-Sky Territory

MARKET SUMMARY

U.S. markets showed continued momentum with the broader clearing May resistance levels while Tech and the small-caps continued their run into blue-sky territory. Ongoing trade talks helped the rally after China offered to import $70 billion in U.S. goods. However, Mexico revealed it is targeting $3 billion for import tariffs, including apples and bourbon, in retaliation for U.S. duties on Mexican steel and aluminum. Volatility continued to ease despite the ongoing geopolitical environment and ahead of next week’s Fed and ECB news.

The Dow showed the most strength after surging 1.45 and tapping an closing high of 25,146 while easily clearing and holding the 25,000 level for the first time since late May.

The S&P 500 soared 0.9% after trading to a high of 2,772 to clear major resistance at 2,750. The index is 100 points away from its all-time high of 2,872 from late January.

The Russell 2000 gained 0.7% to set its 3rd-straight all-time intraday high of 1,676 into the closing bell. Continued momentum could carry the small-caps towards 1,690-1,700 after splitting our near-term target of 1,670-1,680.

The Nasdaq was up 0.7% after setting its 2nd-straight all-time intraday high of 7,691. The index is on track to easily clear 7,700-7,750 over the near-term.

ANALYST UPGRADES/DOWNGRADES

G-III Apparel (GIII) upgraded to Equal Weight from Underweight at Barclays
International Paper (IP) upgraded to Outperform from Sector Perform at RBC Capital
Valeant (VRX) upgraded to Overweight from Equal Weight at Barclays
Ambarella (AMBA) downgraded to Perform from Outperform at Oppenheimer
Trimble (TRMB) downgraded to Buy from Conviction Buy at Goldman Sachs
Yelp (YELP) downgraded to Sector Weight from Overweight at KeyBanc

EARNINGS

Thursday’s earnings reports (EST): 

Before the open: Advaxis (ADXS), Conn’s (CONN), Ferrellgas Partners (FGP), FuelCell Energy (FCEL), Hamilton Lane (HLNE), JM Smucker (SJM), Vail Resorts (MTN)
After the close: At Home Group (HOME), Broadcom (AVGO), Cooper Companies (COO), DocuSign (DOCU), Iteris (ITI), Stitch Fix (SFIX), Unity Biotechnology (UBX), Zumiez (ZUMZ)

 

UPCOMING ECONOMIC NEWS

Thursday’s economic reports (EST): 

Chain Store Sales – 7:00am
Jobless Claims – 8:30am
Bloomberg Consumer Comfort Index – 9:45am
Quarterly Services Survey – 10:00am
Consumer Credit – 3:00pm

METALS / OIL

Gold closed at $1,301.40 an ounce, down $0.80
Silver settled at $16.69 an ounce, up $0.15
Copper finished at $3.26 a pound, up $0.07
Crude Oil is at $64.99 a barrel, down $0.38
Bitcoin Investment Trust (GBTC) ended at $12.45 up $0.02

Make it a great day!

Todd Mitchell

QUOTE OF THE DAY