Dow Posts Biggest Point Gain In A Decade

MARKET SUMMARY
U.S. markets rebounded sharply on Monday following comments over the weekend that trade talks with China were progressing well. Treasury Secretary Mnuchin and U.S. trade representative Lighthizer are leading the negotiations with Chinese President Jinping’s top economic aid Liu He to improve U.S. access to Chinese markets.

Mnuchin said he was cautiously hopeful that China will reach a deal to avoid tariffs and that provided a much needed relief rally following last week’s market selloff.

The Nasdaq zoomed 3.3% after testing an intraday high of 7,225 while easily closing back above the 7,200 level. The Dow surged 2.8% after making a steady run to 24,232 throughout the session to recapture 24,000 level.

The S&P 500 soared 2.7% after trading to a high of 2,661 to easily regain the 2,600 level. The Russell 2000 jumped 2.2% while reaching a peak of 1,543 ahead of the closing bell.

Although the major indexes posted solid gains, the 50-day moving averages for the major indexes are starting to roll over with continued momentum needed to improve the technical setup.

TRADE OF THE DAY

ANALYST UPGRADES / DOWNGRADES
Dollar Tree (DLTR) upgraded to Overweight from Neutral
Intel (INTC) upgraded to Outperform from Market Perform at Raymond James MetLife (MET) upgraded to Overweight from Neutral at Atlantic Equities

AMD (AMD) downgraded to Negative from Neutral at Susquehanna Jack in the Box (JACK) downgraded to Equal Weight from Overweight at Morgan Stanley Willis Towers Watson (WLTW) downgraded to Underperform from Neutral at BofA/Merrill

EARNINGS
Tuesday’s scheduled earnings (EST):
Before the open: Celsion (CSLN), Factset Research Systems (FDS), Francesca’s Holdings (FRAN), IHS Markit (INFO), McCormick & Company (MKC)
After the close: Aptose Biosciences (APTO), ClearSign Combustion (CLIR), Lululemon Athletica (LULU), NetList (NLST), Parateum (TEUM), RH (RH), Shoe Carnival (SCVL), Sonic (SONC)

UPCOMING ECONOMIC NEWS
Tuesday’s economic reports (EST):
Redbook – 8:55am
S&P Case-Shiller – 9:00am
Richmond Fed Manufacturing Index – 10:00am
Consumer Confidence – 10:00am

METALS / OIL
Gold closed at $1,355.00 an ounce, up $5.10
Silver closed at $16.68 an ounce, up $0.10
Copper finished at $2.97 a pound, down $0.02
Crude Oil closed at $65.51 a barrel, down $0.37
Bitcoin Investment Trust (GBTC) settled at $12.612 down $1.11

Make it a great day!

Todd Mitchell

QUOTE OF THE DAY