U.S. markets opened at sessions lows before battling back to finish mostly higher on Tuesday. Some of the nervousness comes ahead of the FOMC minutes and comments that were made from a couple of Fed officials.
The indexes showed strength after Director of the National Economic Council, Larry Kudlow, said that President Trump sees a good possibility a deal can be made with China.
Kudlow added Trump is open to a deal, but the sticky issues must address IP theft and tariff barriers.
The Dow gained 0.4% after testing a late day high of 24,750. Lower resistance at 24,800-25,000 easily held with a close above 25,100 and the 50-day moving average being a more bullish signal.
The S&P 500 added 0.3% following the close at 2,682 and session peak. Fresh and lower resistance at 2,675-2,700 was cleared and held with continued closes above the latter signaling a possible near-term bottom for the index.
The Nasdaq was up a point, or 0.01%, despite the opening backtest to 7,014. Fresh support at 7,000-6,950 held with a close below the latter being a very bearish signal, especially with an official death cross now in play.
The Russell 2000 had its 3-session win streak snapped after sinking 0.9% on the late session pullback to 1,491. Prior and upper support at 1,490-1,480 held on the close back below the 1,500 level.
Healthcare led sector strength after rising 1%. Consumer Staples and Utilities advanced 0.9% and 0.8%, respectively.
Materials tumbled 1.2% and was the worst performing sector while Industrials and Energy were down 0.2% to round out the laggards.
Disney (DIS) upgraded to Outperform from In-Line at Imperial Capital
Parsley Energy (PE) upgraded to Buy from Neutral at Goldman Sachs
Taubman Centers (TCO) was upgraded to Sector Perform from Underperform at Scotiabank
Athenahealth (ATHN) downgraded to Market Perform from Outperform at Wells Fargo
Hormel Foods (HRL) downgraded to Hold from Buy at Jefferies
Wyndham Hotels & Resorts (WH) downgraded to Buy from Conviction Buy at Goldman Sachs
Wednesday’s earnings announcements (EST):
Before the open: Atkore International Group (ATKR), Burlington Stores (BURL), Chico’s FAS (CHS), Dick’s Sporting Goods (DKS), J Jill (JILL), JM Smucker (SJM), Sina (SINA), Tiffany & Co. (TIF), Weibo (WB)
After the close: Box (BOX), Descartes Systems (DSGX), Guess (GES), i3 Verticals (IIIV), La-Z-Boy (LZB), Monmouth Real Estate (MNR), Semtech (SMTC), Tilly’s (TLYS), Veeva Systems (VEEV)
UPCOMING ECONOMIC NEWS
Wednesday’s Economic Reports (EST):
MBA Mortgage Applications – 7:00am
GDP – 8:30am
International Trade in Goods – 8:30am
Corporate Profits – 8:30am
Retail Inventories – 8:30am
Wholesale Inventories – 8:30am
New Home Sales – 10:00am
Richmond Fed Manufacturing Index – 10:00am
State Street Investor Confidence – 10:00am
METALS / OIL
Gold closed at $1,213.40 an ounce, down $9.00
Silver settled at $14.08 an ounce, down $0.12
Copper finished at $2.71 a pound, down $0.05
Crude Oil is at $51.83 a barrel, up $0.13
Bitcoin Investment Trust (GBTC) ended at $4.70
I hope this helps you prepare for the trading day. Make it a great one!