Bulls Hold Momentum Despite Choppiness

U.S. markets opened sharply higher on Friday following a superb monthly jobs report and easing geopolitical concerns. The momentum lasted throughout the first half of action with the major indexes trading in a narrower range afterwards and into the closing bell. Volatility calmed and closed below a major level of support to suggest a continued rally towards prior all-time and fresh record highs.

The Nasdaq surged 1.5% after making an intraday push to 7,557 while clearing and holding the 7,500 level for the first time since mid-March. The index is just over 1% away from taking out its all-time high of 7,637 set on March 13th and was up 1.6% for the week.

The Russell 2000 rallied 0.9% following a run to 1,650 and coming within a point of its midweek all-time high. The small-caps advanced 1.3% for the week with upside towards 1,675-1,680 on continued momentum.

The S&P 500 soared 1.1% on the midday gallop past 2,736. The index rose 0.5% for the week with a close above the 2,750 level being a continued bullish signal.

The Dow gained 0.9% after reaching a peak of 24,673 but needs to clear resistance at 24,800-25,000 to regain lost momentum. The index was down 0.5% following a shortened week of choppy trading and more affected by the geopolitical concerns.

American Airlines (AALWealth Strength IndexAAL is Flat and trending Up) upgraded to Outperform from In-Line at Imperial Capital
Highwoods Properties (HIW) upgraded to Buy from Hold at Stifel
Toyota (TM) upgraded to Outperform from Neutral at Daiwa
AbbVie (ABBV) downgraded to Neutral from Overweight at Piper Jaffray
Perry Ellis (PERY) downgraded to Market Perform from Outperform at IFS Securities
Scotts Miracle-Gro (SMG) downgraded to Underweight from Neutral at JPMorgan

Monday’s earnings reports (EST):

Before the open: Construction Partners (ROAD), Dell Technologies (DVMT), Palo Alto Networks (PANW)
After the close: Capital Southwest (CSWC), HealthEquity (HQY), Quanex Building Products (NX), Smartsheet (SMAR)

Monday’s economic reports (EST):

Factory Orders – 10:00am
TD Ameritrade IMX – 12:30pm

Gold closed at $1,299.30 an ounce, down $5.40
Silver settled at $16.44 an ounce, down $0.02
Copper finished at $3.09 a pound, up $0.03
Crude Oil is at $65.71 a barrel, down $1.33
Bitcoin Investment Trust (GBTC) ended at $12.10 down $0.18

Make it a great day!

Todd Mitchell