Bulls Make a Charge but Resistance Holds

MARKET SUMMARY

The market rebounded on Thursday after China and the U.S. agreed to resume low level trade talks this month before the next round of $200 billion in tariffs is enacted. Chinese delegation will meet U.S. representatives led by Under Secretary of Treasury for International Affairs David Malpass in a new series of trade talks to be held later this month.

The major indexes pushed prior resistance but levels that held into the closing bell. Volatility fell nearly 8% but failed near-term support to give a neutral reading.

The Dow zoomed 1.6% after trading to a session high of 25,607. Resistance at 25,600 held with continued closes above this level leading to a possible run towards 25,800-26,000.

The Russell 2000 rallied 0.9% while tapping a session high of 1,691. The move back above the 50-day moving average was a bullish development with fresh resistance at 1,690-1,700.

The S&P 500 gained 0.8% following the midday push to 2,850. Lower resistance at 2,850-2,860 held with a close above the latter being a bullish signal.

The Nasdaq was up 0.4% after testing a first half high of 7,849. The close back above 7,800 keeps prior resistance at 7,875-7,900 in play.

Consumer Staples soared 1.4% to lead sector strength. Financials and Industrials rose 1.3%.

Communication Services slipped 0.04% and was the only sector in the red.

ANALYST UPGRADES/DOWNGRADES

Lululemon (LULU) upgraded to Buy from Hold at Argus
Embraer (ERJ) upgraded to Overweight from Equal Weight at Morgan Stanley
Avalara (AVLR) upgraded to Buy from Neutral at Goldman Sachs
AstraZeneca (AZN) downgraded to Hold from Buy at Jefferies
Cemex (CX) downgraded to Hold from Buy at HSBC
Nanometrics (NANO) downgraded to Neutral from Buy at DA Davidson

EARNINGS

Friday’s earnings announcements (EST): 

Before the open: ​Deere & Company (DE)
After the close: ​None

UPCOMING ECONOMIC NEWS

Friday’s economic reports (EST): 

​Consumer Sentiment – 10:00am
E-Commerce Retails Sales – 10:00am
Leading Indicators – 10:00am
Baker-Hughes Rig Count – 1:00pm

METALS / OIL

Gold closed at $1,184.00 an ounce, down $1.00

Silver settled at $14.71 an ounce, up $0.26

Copper finished at $2.62 a pound, up $0.06

Crude Oil is at $65.48 barrel, up $0.55

Bitcoin Investment Trust (GBTC) ended at $9.10 down $0.45

Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY