U.S. markets opened in positive territory to start Friday’s action as they tried to regain momentum following the prior session pullback. The blue-chips showed strength throughout much of the session while the other major indexes started slipping midday while struggling to regain positive territory.
The mixed closed showed nervousness ahead of the weekend with the height of 3Q earnings season starting to unfold. Volatility remains slightly elevated and is showing signs of higher highs with a major bullish technical pattern in play and a bearish signal for the market.
The Dow gained 0.3% while testing an intraday high of 25,608. Prior and lower resistance at 25,600-25,800 held with continued closes above 26,000 and the 50-day moving average being a more bullish development.
The S&P 500 slipped a point, or 0.04% after failing resistance at 2,800 by a couple of points. The slight close back below the 200-day moving average keeps risk open to backup support at 2,750-2,825 in play.
For the week, the blue-chip index gained 0.4% and the S&P 500 rose fractionally, both successfully snapping three-week retreats.
The Nasdaq was down 0.5% after kissing a session low of 7,428. It was the 2nd-straight close below 200-day moving average with shaky support at 7,400-7,350 on a move below 7,425.
The Russell 2000 extended its losing streak to 3-straight session following the pullback to 1,538. Support at 1,540-1,535 held with a close below the May low of 1,532 being a very bearish signal.
Tech shed 0.6% for the week to extend its losing streak to 3-straight while the small-caps were down 0.3% to extend its weekly losing streak to 5-straight.
Consumer Staples jumped 2.3% to lead sector strength while Utilities and Real Estate were higher by 1.5% and 1%, respectively.
Consumer Discretionary fell 1% and led sector laggards. Energy and Health Care were off 0.9%.
For the week, Consumer Staples zoomed 4.4%, while Real Estate jumped 3.3% and Utilities advanced 3.1%. Consumer Discretionary and Energy were down 2%, while Materials and Technology gave back 1.2%.
Disney (DIS) upgraded to Overweight from Equal Weight at Barclays
O’Reilly Automotive (ORLYWealth Strength IndexORLY is Moderately Up and trending Up) upgraded to Overweight from Neutral
PayPal (PYPLWealth Strength IndexPYPL is Moderately Flat and trending Up) upgraded to Buy from Neutral at BTIG
eBay (EBAYWealth Strength IndexEBAY is Moderately Flat and trending Down) downgraded to Hold from Buy at Stifel
Harley-Davidson (HOG) downgraded to Market Perform from Outperform at BMO Capital
Las Vegas Sands (LVS) downgraded to Buy from Conviction Buy at Goldman Sachs
Monday’s earnings announcements (EST):
Before the open: Bank of Hawaii (BOH), Community Bank System (CBU), Halliburton (HAL), Hasbro (HASWealth Strength IndexHAS is Moderately Up and trending Up), Kimberly-Clark (KMB), Lennox International (LII), Opus Bank (OPB), PetMed Express (PETS), Polaris Industries (PII), Roper Technologies (ROP), TCF Financial (TCF)
After the close: Agree Realty (ADC), Brown & Brown (BRO), Cadence Design Systems (CDNS), Crane (CR), First Bank (FRBA), HealthStream (HSTM), Hexcel (HXL), HomeStreet (HMST), Logitech (LOGI), Sallie Mae (SLM), TD Ameritrade (AMTD), Veritex Holdings (VBTX), Zions Bancorporation (ZION)
UPCOMING ECONOMIC NEWS
Monday’s Economic Reports (EST):
Chicago Fed National Activity Index – 8:30am
METALS / OIL
Gold closed at $1,228.70 an ounce, down $1.40
Silver settled at $14.65 an ounce, up $0.05
Copper finished at $2.78 a pound, up $0.03
Crude Oil is at $69.18 a barrel, up $0.48
Bitcoin Investment Trust (GBTC) ended at $7.05 up $0.07
I hope this helps you prepare for the trading day. Make it a great one!