Bulls Trample 50-Moving Averages

MARKET SUMMARY
U.S. markets remained strong and in rebound mode after extending their winning streak to 5-straight sessions. Today’s gains were a continued bullish sign as the major indexes cleared their 50-day moving averages, for the most part. This follows Wednesday’s battle fighting to get back into positive territory for the year with the small-caps rejoining the major indexes following today’s gains.

The Nasdaq once again led the way higher after soaring 1.6% after closing a half-point of its late session high of 7,256 while easily clearing and holding its 50-day moving average.

The S&P 500 rose 1.2% after racing to a late session high of 2,731 while closing above the 2,700 level for the first time in 9 sessions. The Dow also advanced 1.2% after reaching an intraday peak of 25,203. Both indexes held their 50-day moving averages by 8 and 50 points, respectively.

The Russell 2000 gained 1% after testing a high of 1,537 while falling 10 points shy of its 50-day moving average. The index is back in positive territory by 2 points for 2018.

TRADE OF THE DAY

ANALYST UPGRADES / DOWNGRADES
Baidu (BIDU) upgraded to Overweight from Equal Weight at Morgan Stanley Bristol-Myers (BMY) upgraded to Overweight from Equal Weight at Morgan Stanley
Salesforce (CRM) upgraded to Buy from Hold at Jefferies

Cemex (CX) downgraded to Sell from Buy at UBS
Patterson Companies (PDCO) downgraded to Underweight from Neutral at JPMorgan
Tanger Factory (SKT) downgraded to Underperform from In Line at Evercore ISI

EARNINGS
Friday’s scheduled earnings include:
American Axle & Manufacturing (AXL), Barnes Group (B), Campbell’s Soup (CPB), Deere & Co (DE), GasLog (GLOG), Iron Mountain (IRM), JM Smucker (SJM), Kraft Heinz (KHC), Newell Brands (NWL), Ryder System (R), VF Corp (VFC), Vulcan Materials (VMC)

UPCOMING ECONOMIC NEWS
Friday’s economic reports (EST):
Housing Starts – 8:30am
Import and Export Prices – 8:30am
Consumer Sentiment – 10:00am
E-Commerce Retail Sales – 10:00am
Baker-Hughes Rig Count – 1:00pm

METALS / OIL
Gold closed at $1,355.30 an ounce, down $2.70
Silver settled at $16.80 an ounce, down $0.08
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

QUOTE OF THE DAY