Bulls Stay Strong

U.S. markets traded higher despite worry over inflation fears and weaker-than-expected economic news to extend its winning streak to 4-straight sessions. The continued follow through remains a bullish signal as the 50-day moving averages for the major indexes are back in play.

The Nasdaq showed the strongest gains after zooming 1.9% and trading to an intraday high of 7,152 while closing back above its 50-day moving average.

The Russell 2000 rallied 1.8% after making a run to 1,523 to close back above the 1,500 level for the first time in five sessions. The index is less than 2% away from its 50-day moving average.

The S&P 500 surged 1.3% after trading to a high of 2,702 while closing just below the 2,700 level. The Dow jumped 1% after testing n intraday peak of 24,925. With today’s gains, both indexes pulled within 1% of their 50-day moving averages.

Emerson Electric (EMR) upgraded to Outperform from Sector Perform at RBC Capital
Generac (GNRC) upgraded to Buy from Hold at SunTrust
Northrop Grumman (NOC) upgraded to Buy from Hold at Jefferies

Avis Budget (CAR) downgraded to Sell from Neutral at Goldman Sachs Chimerix (CMRX) downgraded to Underweight from Neutral at JPMorgan Lexicon (LXRX) downgraded to Underweight from Neutral at JPMorgan

Thursday’s scheduled earnings include:
Before the open: Aaron’s (AAN), Build-A-Bear Workshop (BBW), CyberArk (CYBR), Fortis (FTS), Global Payments (GPN), Materion (MTRN), Nice Systems (NICE), Pool (POOL), Sonoco (SON), TreeHouse Foods (THS), Zoetis (ZTS)
After the close: Arista Networks (ANET), CBS (CBS), Cray (CRAY), Flowserve (FLS), LogMeIn (LOGM), MuleSoft (MULE), Shake Shack (SHAK), TrueCar (TRUE)

Thursday’s economic reports (EST):
Chain Store Sales – 7:00am
Jobless Claims – 8:30am
Bloomberg Consumer Comfort Index – 9:45am

Gold closed at $1,358.00 an ounce, up $27.60
Silver settled at $16.88 an ounce, up $0.35
Copper finished at $3.23 a pound, up $0.07
Crude Oil closed at $60.81 a barrel, down $0.21
Bitcoin Investment Trust (GBTC) settled at $16.44, up $2.05

Make it a great day!

Todd Mitchell