Fresh 2018 Lows in Play

MARKET SUMMARY
U.S. markets traded to the downside for the second-straight session with heavier losses and a backtest towards Tuesday’s monthly and 2018 lows. Some of these levels were breached into the closing bell and likely signals additional weakness and a steeper correction in the coming sessions.

The Dow dropped 4.2% after testing a low of 23,849 while closing below the 24,000 for the first time since late November. The index held its previous session low of 23,778 with risk to 23,500-23,000 on continued selling pressure. The S&P 500 sank 3.8% after testing a fresh 2018 low of 2,580 to get November support levels in play.

The Nasdaq tanked 3.9% while tapping a 2018 low of 6,776 with early December support levels holding. The Russell 2000 gave back 2.9% after bottoming at 1,463 but was able to hold its 200-day moving average and Tuesday’s low of 1,461.

TRADE OF THE DAY

ANALYST UPGRADES / DOWNGRADES
Anadarko (APC) upgraded to Outperform from Neutral at Macquarie
Just Energy (JE) was upgraded to Outperformer from Neutral at CIBC
Molson Coors (TAP) upgraded to Hold from Sell at Berenberg

Allison Transmission (ALSN) downgraded to Neutral from Buy at BofA/Merrill Cosan (CZZ) downgraded to Neutral from Buy at UBS
Enanta (ENTA) downgraded to Neutral from Overweight at JPMorgan

EARNINGS
Friday’s scheduled earnings include:
BGC Partners (BGCP), Cae (CAE), CBOE Holdings (CBOE), Loews (L), Malibu Boats (MBUU), Moody’s (MCO), Tenneco (TEN), Ventas (VTR)

UPCOMING ECONOMIC NEWS
Friday’s economic reports (EST):
Wholesale Trade – 10:00am
Baker-Hughes Rig Count – 1:00pm

METALS / OIL
Gold closed at $1,319.00 an ounce, up $4.40
Silver settled at $16.34 an ounce, up $0.10
Copper finished at $3.08 a pound, unchanged
Crude Oil closed at $60.42 a barrel, down $1.37
Bitcoin Investment Trust (GBTC) settled at $13.94, up $0.26

 

Make it a great day!

Todd Mitchell

QUOTE OF THE DAY