U.S. markets opened in positive territory following another round of solid earnings reports and a wave of M&A news. However, the gains started to fade into the second-half of action as traders turned their focus towards the FOMC decision from the Fed on Wednesday and the monthly jobs report on Friday. The major indexes closed on their lows but showed gains for April although the technical outlook has turned slightly bearish.
The Russell 2000 sank 0.9% after closing in the red for the 7th-time in 8 sessions while bottoming at 1,541. The close below its 50-day moving average was a slightly bearish development despite the index gaining 0.8% in April.
The Nasdaq gave back 0.8% after failing its 50-day moving average for a second-straight session while testing a low of 7,065 into the close. The index added 3 points, or 0.1%, for the month.
The S&P 500 fell 0.8% after settling at 2,648 to snap a 3-session win streak. A move towards 2,600 and the 200-day moving average is in play on continued weakness.
The Dow declined 0.6% following the backtest to 24,163 and session low. The index held 24,000 for the 4th-straight session with a close below this level getting the 200-day moving average back in play.
For the month, the S&P 500 and Dow gained 0.3%.
TRADE OF THE DAY
ANALYST UPGRADES / DOWNGRADES
Altria Group (MO) upgraded to Outperform from Sector Perform at RBC Capital
Cirrus Logic (CRUS) upgraded to Buy from Hold at Craig-Hallum
New York Times (NYT) upgraded to Overweight from Neutral at JPMorgan
Colgate-Palmolive (CL) downgraded to Equal Weight from Overweight at Morgan Stanley
JetBlue (JBLU) downgraded to Neutral from Overweight at JPMorgan
Wayfair (W) downgraded to Neutral from Outperform at Wedbush
Before the open: Aetna (AET), Brinker International (EAT), Cummins (CMI), Eaton (ETN), Fortis (FTS), GrubHub (GRUB), HanesBrands (HBI), Imax (IMAX), Johnson Controls (JCI), Lumber Liquidators (LL), Merck (MRK), Noble Energy (NBL), Pfizer (PFE), Seagate Technology (STXWealth Strength IndexSTX is Extremely Flat and trending Down), Tapestry (TPR), Under Armour (UA), Vista Outdoor (VSTO)
After the close: Allstate (ALL), Brooks Automation (BRKS), Cray (CRAY), Denny’s (DENN), Energous (WATT), Five9 (FIVN), Gilead Sciences (GILDWealth Strength IndexGILD is Moderately Up and trending Up), Howard Hughes (HHC), Juniper Networks (JNPR), Kforce (KFRC), Mondelez International (MDLZWealth Strength IndexMDLZ is Extremely Up and trending Up), NCR (NCR), Plantronics (PLT), Red Rock Resorts (RRR), Shutterfly (SFLY), Snap (SNAP), Unisys (UIS), Voya Financial (VOYA), Western Union (WU)
UPCOMING ECONOMIC NEWS
Tuesday’s economic reports (EST):
Redbook – 8:55am
PMI Manufacturing Index – 9:45am
ISM Manufacturing Index – 10:00am
Construction Spending – 10:00am
METALS / OIL
Gold closed at $1,319.20 an ounce, down $4.20
Silver settled at $16.40 an ounce, down $0.10
Copper finished at $3.04 a pound, down $0.05
Crude Oil closed at $68.44 a barrel, up $0.47
Bitcoin Investment Trust (GBTC) settled at $15.85 up $0.35
Make it a great day!