Bulls Push Fresh Monthly Lows

U.S. markets showed strength throughout much of the session before late days news on trade talks derailed the rally. The White House is reportedly preparing to announce tariffs by early December on all remaining Chinese imports if talks next month between presidents Donald Trump and Xi Jinping fail to make progress.

The new tariff list would apply to the imports from China that aren’t already covered by previous rounds of tariffs and sent the major indexes reeling. Fresh monthly lows were set with volatility remaining slightly elevated..

The Nasdaq tumbled 1.6% after testing a low of 6,922. Lower May support at 7,100-7,000 was breached but held into the closing bell.

The Dow declined 1% despite clearing the 25,000 level shortly after the open. The 918-point plummet to 24,122 breached support from late June at 24,500-24,250 with the latter level holding into the close.

The S&P 500 gave back 0.7% after trading dow to 2,603. Late April and lower support at 2,625-2,600 held with risk to 2,550 and February lows on a move below the latter.

The Russell 2000 was lower by 0.4% following the late session pullback to 1,461. February and upper support at 1,460-1,450 held with risk to 1,425 on a close below the latter.

Real Estate and Utilities showed the most sector strength after rising 1.7% and 1.4%. Consumer Staples and Financials gained 1.2% and 0.9%, respectively.

Energy led sector weakness after sinking 1.9% while Technology and Industrials were off 1.7%.


ConocoPhillips (COP) upgraded to Buy from Neutral at BofA/Merrill
Ford (F) upgraded to Buy from Neutral at Goldman Sachs
STMicroelectronics (STM) upgraded to Neutral from Sell at UBS

Electronic Arts (EAWealth Strength IndexEA is Moderately Flat and trending Up) downgraded to Sector Weight from Overweight at KeyBanc
Palo Alto Networks (PANW) downgraded to Hold from Buy at Summit Insights.
Western Digital (WDCWealth Strength IndexWDC is Flat and trending Up) downgraded to Hold from Buy at Loop Capital


Tuesday’s earnings announcements (EST): 

Before the open: ​​Aetna (AET), Brinker International (EAT), Coca-Cola (KO),
Cummins (CMI), Eaton (ETN), Flir Systems (FLIR), General Electric (GE), Honda Motor (HMC), Kemet (KEM), Mastercard (MA), Pfizer (PFE), Shutterstock (SSTK), Sony (SNE), Tapestry (TPR), Under Armour (UAA), Vulcan Materials (VMC), Welltower (WELL), Xylem (XYL)

After the close: ​3D Systems (DDD), Amgen (AMGNWealth Strength IndexAMGN is Moderately Up and trending Up), Baidu.com (BIDUWealth Strength IndexBIDU is Moderately Flat and trending Up), Cheesecake Factory (CAKE), Denny’s (DENN), eBay (EBAYWealth Strength IndexEBAY is Extremely Flat and trending Down), Electronic Arts (EAWealth Strength IndexEA is Moderately Flat and trending Up), Facebook (FBWealth Strength IndexFB is Extremely Down and trending Down), FireEye (FEYE), Genworth Financial (GNW), Herbalife Nutrition (HLF), Hyatt Hotels (H), Key Tronic (KTCC), Markel (MKL), MGM Resorts (MGM), NutriSystem (NTRI), Owens-Illinois (OI), Public Storage (PSA), Seaspan (SSW), Shutterfly (SFLY), T-Mobile (TMUSWealth Strength IndexTMUS is Moderately Flat and trending Down), Voya Financial (VOYA), Yum China Holdings (YUMC)

Tuesday’s Economic Reports (EST):
Redbook – 8:55am
S&P Corelogic Case-Shiller – 9:00am
Consumer Confidence – 10:00am
State Street Investor Confidence – 10:00am
Farm Prices – 3:00pm


Gold closed at $1,227.60 an ounce, down $8.20
Silver settled at $14.44 an ounce, down $0.26

Copper finished at $2.74 a pound,unchanged

Crude Oil is at $67.71 a barrel, down $0.91

Bitcoin Investment Trust (GBTC) ended at $6.83 down $0.14

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

   Todd Mitchell