The market pulled back on Friday despite solid earnings from the Financial sector. The solid numbers were attributed to rising interest rates and the effects of tax reform, but strong earnings were widely expected with the sector turning lower soon after the open.
The market kept its losses to a minimum although the final hour of trading brought session lows with a slight bounce into the close.The major indexes still managed gains for the week and ahead of the first full week of 1Q earnings season.
The S&P 500 slipped 0.3% after tapping a low of 2,645 but has been holding the 2,600 level for nine-straight sessions. The Dow fell 0.5% following the back test to 24,243 while holding the 24,000 level for the past four sessions.
For the week, the S&P 500 was up 2% while the Dow gained 1.8%. Both indexes failed their 50-day moving averages on the open with the 100-day moving averages closing below the former for the week. We mentioned the mini-death crosses would be a slightly bearish development and something to watch this week.
The Nasdaq gave back 0.5% after trading to an intraday low of 7,078 but has been holding the 7,000 level for four-straight sessions. The Russell 2000 was lower by 0.5% following the late day bottom to 1,545 and has been holding crucial support at the 1,500 level for nine-straight sessions.
The Russell 2000 rallied 3% for the week while the Nasdaq jumped 2.8%. The Nasdaq closed slightly below its 100-day moving average while the Russell 2000 held this key technical level of support on Friday’s pullback.
ANALYST UPGRADES / DOWNGRADES
Eli Lilly (LLY) upgraded to Market Perform from Underperform at BMO Capital
Netflix (NFLX) upgraded to Buy from Hold at Deutsche Bank
Shaw Communications (SJR) upgraded to Buy from Hold at Canaccord
Diamond Offshore (DO) downgraded to Underperform from Neutral at Credit Suisse
Starbucks (SBUX) downgraded to Market Perform from Outperform at Cowen
Tenneco (TEN) downgraded to Neutral from Buy at Goldman Sachs
Before the open: Bank of America (BAC), M&T Bank (MTB)
After the close: Celanese (CE), First Defiance Financial (FDEF), Lakeland Industries (LAKE), Netflix (NFLX), Pinnacle Financial Partners (PNFP), SeaChange International (SEAC), Wintrust Financial (WTFC)
UPCOMING ECONOMIC NEWS
Monday’s economic reports (EST):
Retail Sales – 8:30am
Empire State Manufacturing Survey – 8:30am
Business Inventories -10:00am
Housing Market Index – 10:00am
METALS / OIL
Gold closed at $1347.90 an ounce, up $6.00
Silver closed at $16.66 an ounce, up $0.19
Copper finished at $3.07 a pound, up $0.01
Crude Oil closed at $67.39 a barrel, up $0.26
Bitcoin Investment Trust (GBTC) settled at $13.52 up $1.04
Make it a great day!
QUOTE OF THE DAY