Bulls Keep May Momentum 05-28-2018

U.S. markets were weak for much of Friday’s session but showed some strength intraday before settling mixed. The Energy sector was the major news story following a report about higher output being planned from OPEC and Russia.

There was little impact from earnings or economic news as the major indexes traded in a narrower range on light volume while closing higher for the week. Volatility traded below major support but a level that failed to hold.

The Dow fell 0.2% following a backtest to 24,687 while closing below the 24,800 level for the first time in five sessions. The S&P 500 also declined 0.2% after testing a low of 2,714 but has been holding major support at the 2,700 level for the past dozen sessions.

The Dow and the S&P 500 were up 0.2% and 0.3%, respectively, for the week with both indexes showing gains in two of the past three weeks.

The Russell 2000 slipped 0.1% after trading in a 5-point range while topping out at 1,628. The Nasdaq advanced 0.1% after reaching a peak of 7,452 intraday while closing above the 7,400 level for the 3rd-straight session.

For the week, the Nasdaq was up 1.1% and Russell 2000 advanced a third of a point, respectively, with both higher in three of the past four weeks.


Best (BSTI) upgraded to Buy from Neutral at Citi
Colgate-Palmolive (CL) upgraded to Buy from Hold at Argus
PayPal (PYPLWealth Strength IndexAAPL is Extremely Up and trending Up) upgraded to Buy from Hold at Stifel
8×8 (EGHT) downgraded to Neutral from Buy at BofA/Merrill
First Cash Financial (FCFS) downgraded to Neutral from Outperform at Credit Suisse
Ultra Petroleum (UPL) downgraded to Hold from Buy at Stifel

Tuesday’s Earnings Reports:
Before the open: American Woodmark (AMWD), Bank of Nova Scotia (BNS), Booz Allen Hamilton (BAH), Momo (MOMO), Multi-Color (LABL), Quotient (QTNT)
After the close: Cavco Industries (CVCO), Educational Development (EDUC), Heico (HEI), HP (HPQ), PagSeguro (PAGS), Safe Bulkers (SB), Salesforce (CRM)

Tuesday’s economic reports (EST):
S&P Corelogic Case-Shiller – 9:00am
Consumer Confidence – 10:00am
State Street Investor Confidence – 10:00am
Dallas Fed Manufacturing Survey – 10:30am

Gold closed at $1,303.70 an ounce, down $0.70
Silver settled at $16.55 an ounce, down $0.14
Copper finished at $3.08 a pound, down $0.01
Crude Oil is at $67.50 a barrel, down $0.38
Bitcoin Investment Trust (GBTC) ended at $12.15 down $0.09

Make it a great day!

Todd Mitchell