Bulls Post Strong Weekly Gains

U.S. markets traded mostly higher for a 6th-straight session following Friday’s gains with the major indexes continuing their v-shape recovery. It was the second-straight up Friday for the Dow and S&P 500 and showed cash is still coming back into the market and off the sidelines. More importantly, the slight overall gains came ahead of a 3-day holiday weekend as Wall Street will be closed on Monday for President’s Day.

The Russell 2000 climbed 0.4% and showed the most strength after trading to a midsession high of 1,551. The small-caps closed just 4 points below its 50-day moving average after rallying 4.4% for the week.

The Dow climbed 0.1% after testing a high of 25,432 while the S&P 500 added a point, or 0.04% after reaching an intraday peak of 2,754. For the week, the Dow rose 4.3% to post its biggest one-week percentage rise since November 2016. The S&P 500 also gained 4.3% for its best week since January 2013.

The Nasdaq showed strength throughout the first half of action while testing a top of 7,303 before turning south to finish 0.2% lower on the close. The index easily held the 7,200 level on the pullback while closing above its 50-day moving average for the third-straight session. The Nasdaq ended up 5.3% in its best weekly percentage gain since December 2011.

Utilities showed continued strength with the sector rising 0.9% while Health Care and Real Estate added 0.7%. Consumer Discretionary and Materials led sector laggards after giving back 0.5% and 0.4%, respectively.

All major sectors closed in positive territory for the week and were led by Technology’s 5.8% surge. Financials and Industrials rallied 4.7% while Consumer Discretionary and Health Care soared 4%.


Fortis (FTS) was upgraded to Sector Perform from Underperform at National Bank
Huntington Ingalls (HII) upgraded to Outperform from Neutral at Credit Suisse
Waste Management (WM) upgraded to Outperform from Market Perform at Raymond James

Allison Transmission (ALSN) was downgraded to Sector Perform at RBC Capital
Biogen (BIIBWealth Strength IndexBIIB is Flat and trending Up) downgraded to Hold from Buy at Argus
Dr Pepper Snapple (DPS) downgraded to Hold from Buy at Jefferies

Market closed on Monday for President’s Day.
Tuesday’s scheduled earnings (EST):
Before the open: Allegion (ALLE), Cooper Tire & Rubber (CTB), Cracker Barrel (CBRL), DineEquity (DIN), Domino’s (DPZ), Energen (EGN), Gannett (GCI), Home Depot (HD), Medtronic (MDT), MGM Resorts (MGM), Noble Energy (NBL), Six Flags (SIX), Wal-Mart Stores (WMT)

After the close: American Water Works (AWK), Boyd Gaming (BYD), Cardtronics (CATM), Devon Energy (DVN), Fluor (FLR), Halozyme Therapeutics (HALO), La-Z-Boy (LZB), Public Storage (PSA), Rent-A-Center (RCII), TherapeuticsMD (TXMD), Vectren (VVC)

Tuesday’s economic reports (EST):
No major reports.

Gold closed at $1,356.20 an ounce, up $0.90
Silver closed at $16.71 an ounce, down $0.09
Copper finished at $3.25 a pound, up $0.01
Crude Oil closed at $61.61 a barrel, down $0.17
Bitcoin Investment Trust (GBTC) settled at $17.76, down $0.88

Make it a great day!
Todd Mitchell