U.S. markets rebounded on Friday’s open but had a roller coaster ride to cap a volatile week. The major indexes opened sharply higher following two days of massive selling pressure but lost momentum by midday with the blue-chips and the small-caps fading back into negative territory.
Both the Dow and the Russell 2000 regrouped to close higher, with the Nasdaq and S&P 500 holding gains throughout the session. Volatility traded to a lower high than the previous session before settling below key levels of support into the closing bell while the market finished its worst weekly performance since March.
The Dow jumped 1.2% after testing an intraday high of 25,467. Fresh resistance at 25,500-25,600 is in play as long as 25,400-25,350 holds with a close above 25,750 being a more bullish development.
The S&P 500 soared 1.4% following the run to 2,775 ahead of the closing bell. Lower resistance at 2,775-2,800 held with a move above the latter possibly signaling a short-term bottom.
For the week, the Dow fell 4.2% while the S&P 500 sank 4.1%. Both indexes recovered their 200-day moving averages on Friday’s rebound.
The Nasdaq zoomed 2.3% after testing an late session peak of 7,516. Fresh resistance at 7,500-7,550 and the 200-day moving average held with continued closes above these levels signaling a near-term bottom.
The Russell 2000 closed higher for the first time in 7 sessions after adding 0.1% and tapping a session high of 1,567. The May 1st low kissed 1,527 and the May 3rd bottom reached 1,532. Friday’s midday low touched 1,530. A move below 1,525 could lead towards another round of selling pressure. It is important to note the small-caps cleared the 1,700 level on the 12% rebound from early May into mid-June afterwards. However, the action on Friday was slightly bearish.
Tech was down 3.7% for the week while the small-caps gave back 4.7%. Both the Nasdaq and Russell 2000 closed below their 200-day moving averages for a 2nd-straight session.
Technology and Communication Services showed the most sector strength after rising 3.2% and 2.2%. Consumer Discretionary and Health Care rallied 1.9% and 1.5%.
Utilities and Real Estate declined 0.1% and were the only sector laggards.
For the week, Materials and Industrials sank 6.7% and 6.4% while Energy dropped 5.5% to pace sector laggards. There were no sectors that closed positive for the week.
Microsoft (MSFTWealth Strength IndexMSFT is Extremely Flat and trending Up) upgraded to Outperform from Neutral at Macquarie
Netflix (NFLXWealth Strength IndexNFLX is Extremely Down and trending Down) upgraded to Buy from Neutral at Citi
Snap (SNAP) upgraded to Buy from Hold at Pivotal Research
Molina Healthcare (MOH) downgraded to Hold from Buy at Jefferies
Oneok (OKE) downgraded to Equal Weight from Overweight at Barclays
Veon (VEON) downgraded to Neutral from Buy at Goldman Sachs
Monday’s earnings announcements (EST):
Before the open: Bank of America (BAC), Charles Schwab (SCHW), Rafael Holdings (RFL)
After the close: First Defiance Financial ( FDEF)
UPCOMING ECONOMIC NEWS
Monday’s Economic Reports (EST):
Retail Sales – 8:30am
Empire State Manufacturing Survey – 8:30am
Business Inventories –10:00am
METALS / OIL
Gold closed at $1,222.20 an ounce, down $5.60
Silver settled at $14.64 an ounce, up $0.03
Copper finished at $2.80 a pound, unchanged
Crude Oil is at $71.51 a barrel, up $0.52
Bitcoin Investment Trust (GBTC) ended at $6.85 up $0.07
I hope this helps you prepare for tomorrow. Have a great evening.