U.S. markets were slightly weak on Monday’s open on news China is ready to impose retaliatory tariffs on $60 billion of U.S. goods, in response to the U.S.’s planned 25% tariffs on $200 billion of Chinese goods. National Security Adviser John Bolton said the U.S. will take the trade war far enough to get China to change.
On the other hand, China said it is prepared for a protracted trade war and doesn’t fear sacrificing short-term economic interests. Despite the rhetoric, the major indexes found some momentum afterwards that lasted into the afternoon and held into the closing bell.
The Dow climbed 0.2% after trading to a midday high of 25,540. Resistance at 25,600 held with a close above this level being a bullish development for a run towards 25,800-26,000.
The S&P 500 gained 0.4% following its intraday push to 2,853 while holding the 2,850 level. Late January resistance is at 2,870-2,875 on continued closes above 2,850.
The Nasdaq was up for a 5th-straight session after adding 0.6% while testing a high of 7,859. Lower resistance at 7,850-7,900 held with the all-time high at 7,933 just 1% away from triggering at current levels.
The Russell 2000 rose 0.7% after going out at its peak of 1,684 to split resistance at 1,680-1,690. A close above the latter would be a bullish signal with fresh hurdles at 1,700-1,710 and the lifetime high at 1,708.
Communications Services and Consumer Discretionary paced sector strength after soaring 1% and 0.7%, respectively. Technology and Financials advanced 0.6% and 0.5%, respectively.
Real Estate and Materials were the only sector laggards after giving back 0.2%, and 0.03%, respectively.
Comcast (CMCSA) upgraded to Overweight from Neutral at Atlantic Equities
Parker-Hannifin (PH) upgraded to Outperform from In Line at Evercore ISI
Square (SQ) upgraded to Buy from Neutral at Buckingham
Acadia (ACAD) downgraded to Neutral from Overweight at Piper Jaffray
CommScope (COMM) downgraded to Hold from Buy at Jefferies
Intel (INTC) downgraded to Equal Weight from Overweight at Barclays
Tuesday’s earnings announcements (EST):
Before the open: Amicus Therapeutics (FOLD), BioScrip (BIOS), Crocs (CROX), Dean Foods (DF), Discovery Communications (DISCA), Emerison Electric (EMR), Gray Television (GTN), Heska (HSKA), Johnson Outdoors (JOUT), LGI Homes (LGIH), Owens & Minor (OMI), Radius Health (RDUS), Sotherly Hotels (SOHO), U.S. Concrete (USCR)
After the close: 3D Systems (DDD), Avis Budget Group (CAR), Camping World Holdings (CWH), CarGurus (CARG), Diodes (DIOD), Fossil (FOSL), Great Ajax (AJX), Hostess Brands (TWNK), Inogen (INGN), Jazz Pharmaceuticals (JAZZ), Kronos Worldwide (KRO), Match Group (MTCH), New Relic (NEWR), Opko Health (OPK), Papa John’s International (PZZA), Primerica (PRI), Redwood Trust (RWT), Shutterfly (SFLY), Snap (SNAP), Team (TISI), Walt Disney (DIS), Wendy’s (WEN)
UPCOMING ECONOMIC NEWS
Tuesday’s economic reports (EST):
Redbook – 8:55am
Jolts – 10:00am
Consumer Credit – 3:00pm
METALS / OIL
Gold closed at $1217.70 an ounce, down $5.50
Silver settled at $15.35 an ounce, down $0.11
Copper finished at $2.73 a pound, down $0.02
Crude Oil is at $68.88 barrel, up $0.20
Bitcoin Investment Trust (GBTC) ended at $9.97 down $0.18
Make it a great day!