Bulls Keep Slight Momentum 05-15-2019

U.S. markets opened lower to start Wednesday’s session following slightly disappointing economic news concerning retail sales. The major averages avoided lower lows and started showing strength an hour afterwards on news that President Trump will delay a decision by up to 6 months to impose tariffs on auto imports at some point this week.

With Friday’s deadline over how to proceed with Trump’s threat to impose a tariff of as much as 25% on imported cars fast approaching, the market took it as a sign that negotiations with Europe and Japan can be extended with a possible resolution.

The Nasdaq soared 1.1% after trading to an intraday high of 7,838. Key resistance at 7,850 and the 50-day moving average held with a close above these levels getting 7,900-7,950 back in play.

The S&P 500 gained 0.6% after testing a 2nd half high of 2,858. Near-term and lower resistance at 2,850-2,875 was cleared and held with a close above the latter and the 50-day moving average signaling additional strength.

The Dow rose 0.5% following the late day run to 25,724. Lower resistance at 25,600-25,800 and the 200-day moving average was cleared and held with a more bullish signal coming on a close back above 26,000 and the 50-day moving average.

The Russell 2000 traded in a 21-point range while adding 0.3% and testing an intraday peak of 1,550. Near-term and lower resistance at 1,550-1,575 held for the 2nd-straight session with a close above the latter and the 50/200-day moving averages being a more bullish development.

Communications Services surged 2.2% and Technology jumped 1.1% to led sector strength. Consumer Staples was up 0.8% while Real Estate and Consumer Discretionary were higher by 0.7%.

Financials fell 0.4% and Materials were off 0.3%. Utilities were down 0.2% to round out the sector laggards.

ANALYST UPGRADES/DOWNGRADES

​Applied Materials (AMATWealth Strength IndexAMAT is Moderately Flat and trending Up) upgraded to Positive from Neutral at Susquehanna
Westlake Chemical (WLK) upgraded to Buy from Neutral at Goldman Sachs
Zillow (ZG, Z) upgraded to Buy from Neutral at Guggenheim

Buckeye Partners (BPL) downgraded to Sell from Hold at Argus
Gladstone Investment (GAIN) downgraded to Neutral from Buy at Ladenburg
Kirkland’s (KIRK) downgraded to Neutral from Buy at B. Riley FBR

EARNINGS 
Before the open (EST):
​Azz (AZZ), Boxlight (BOXL), Eagle Materials (EXP), Frontline (FRO), Jumia Technologies (JMIA), Kemet (KEM), MakeMyTrip (MMYT), Nice Systems (NICE), Qiwi (QIWI), Walmart (WMT), Wix.com

After the close(EST):
​Applied Materials (AMATWealth Strength IndexAMAT is Moderately Flat and trending Up), Boot Barn Holdings (BOOT), EnerSys (ENS), Huya (HUYA), Nvidia (NVDAWealth Strength IndexNVDA is Moderately Flat and trending Up), Pinterest (PINS), Rise Education (RISE), Voxeljet (VJET)

UPCOMING ECONOMIC NEWS 
Thursday’s economic reports (EST): 
​Jobless Claims – 8:30am
Housing Starts – 8:30am
Philadelphia Fed Business Outlook Survey – 8:30am

METALS / OIL
Gold closed at $1,297.80 an ounce, up $1.50
Silver settled at $14.81 an ounce, unchanged
Copper finished at $2.74 a pound, up $0.02
Crude Oil was at $62.20 a barrel, up $0.82
Bitcoin Investment Trust (GBTC) ended at $10.55 up $1.07


  I hope this helps you prepare for the trading day. Make it a great one!

   Todd Mitchell