Bulls Rebound, Recover Previous Losses

MARKET SUMMARY
U.S. markets opened sharply higher and showed continued momentum throughout the session to recover nearly all of the losses from the start of the shortened week. Bond yields settled down, helping the Financial sector regain some of the ground it had lost in the previous session over Italy’s political drama. Volatility relaxed but remains slightly elevated heading into Friday’s jobs report.

The Dow jumped 1.3% after trading to a high of 24,714 while closing back above its 50-day moving average. The S&P 500 also soared 1.3% while testing an intraday high of 2,729 to recover the 2,700 level.

The Russell 2000 zoomed 1.5% to close at a record high while peaking at an all-time high of 1,651 intraday. The Nasdaq surged 0.9% after trading to a high of 7,473 while closing back above the 7,400 level.

Energy rocketed 3% to easily pace sector strength. Financials were up 1.8% while Health Care and Real Estate rallied 1.5% and 1.4%, respectively. There were no sector laggards.

TRADE OF THE DAY

ANALYST UPGRADES/DOWNGRADES

Allegheny Technologies (ATI) upgraded to Neutral from Sell at Goldman Sachs
Exxon Mobil (XOM) upgraded to Outperform from Sector Perform at RBC Capital
HP (HPQ) upgraded to Buy from Hold at Maxim
Apple (AAPL) downgraded to Hold from Buy at Maxim
Petrobras (PBR) downgraded to Hold from Buy at Santander
Hope Bancorp (HOPE) downgraded to Neutral from Buy at DA Davidson

EARNINGS

Thursday’s earnings reports (EST): 

Before the open: American Eagle Outfitters (AEO), Burlington Stores (BURL), Ciena (CIEN), Dollar General (DG), Dollar Tree Stores (DLTR), Express (EXPR), Frontline (FRO), Golar LNG Partners (GMLP), J Jill (JILL), Kirkland’s (KIRK), Perry Ellis International (PERY), Ship Finance International (SFL), Tech Data (TECD), Titan Machinery (TITN)
After the close: Costco Wholesale (COST), GameStop (GME), InnerWorkings (INWK), Lululemon (LULU), Marvell Technologies (MRVL), Ulta Beauty (ULTA), VMware (VMW), Workday (WDAY), Yext (YEXT)

UPCOMING ECONOMIC NEWS

Thursday’s economic reports (EST): 

Challenge Job-Cut Report – 7:30am
Jobless Claims – 8:30am
Personal Income and Outlays – 8:30am
Chicago PMI – 9:45am
Bloomberg Consumer Comfort Index – 9:45am
Pending Home Sales – 10:00am

METALS / OIL

Gold closed at $1,306.50 an ounce, up $7.50
Silver settled at $16.54 an ounce, up $0.17
Copper finished at $3.07 a pound, up $0.01
Crude Oil is at $68.33 a barrel, up $1.60
Bitcoin Investment Trust (GBTC) ended at $11.96 down $0.19