January Resistance Levels Hold

MARKET SUMMARY

U.S. markets were mixed for a 2nd-straight session after China responded to the U.S.’s plan to impose new 25% tariffs on Chinese goods that will take effect August 23rd. China said it would match that move, with similar tariffs to take effect the same day.

Fresh resistance and January highs were tested and remain in play despite the lackluster action and tough talk. Tech and small-caps showed strength with volatility also pushing January lows.

Fresh resistance and January highs were tested and remain in play despite the lackluster action and tough talk. Tech and small-caps showed strength with volatility also pushing January lows.

The Nasdaq extend its winning streak to 8-straight sessions and longest of the year after rising 3 points, or 0.04%, while tapping a high of 7,923. Lower resistance at 7,900-7,925 held for a 3rd-straight session despite the index coming within 10 points of a fresh all-time high.

The Russell 2000 held positive territory for the majority of the session while rising 0.2% and making a run to 1,696 intraday. Lower resistance at 1,690-1,700 held with a move above the latter getting record highs back in play.

The Dow was slightly lower for a 2nd-straight day after giving back 0.3% following the backtest to 25,492 ahead of the closing bell. The lower low and 2nd-straight close below the 25,600 level was a slightly bearish development with near-term support at 25,400 needing to hold ahead of the weekend.

The S&P 500 declined 0.1% despite testing an intraday high of 2,862 and also coming within 10 points of fresh lifetime peaks. Support remains at 2,850 with Thursday’s low reaching 2,851.

Materials and Communication Services paced sector leaders after rising 0.5%. Utilities rose 0.4% while Consumer Discretionary and Real Estate gained 0.3%.

Energy sank 1.1% and was the weakest sector. Financials and Industrials were down 0.6%.

ANALYST UPGRADES/DOWNGRADES

Ormat Technologies (ORA) upgraded to Overweight from Neutral at JPMorgan
WildHorse Resource (WRD) upgraded to Buy from Hold at SunTrust
Comstock Resources (CRK) upgraded to Buy from Neutral at Ladenburg
Seagate (STX) downgraded to Sell from Neutral at Goldman Sachs
21st Century Fox (FOXA) downgraded to Sector Perform from Outperform at RBC Capital
Schneider National (SNDR) downgraded to Underperform from Buy at BofA/Merrill

EARNINGS

Friday’s earnings announcements (EST): 

Before the open: ​Applied Industrial Technologies (AIT), China Yuchai International (CYD), GWG Holdings (GWGH), Meredith (MDP)
After the close: Innovative Industrial Properties (IIPR)

UPCOMING ECONOMIC NEWS

Friday’s economic reports (EST): 

​Consumer Price Index – 8:30am
Baker-Hughes Rig Count – 1:00pm

METALS / OIL

Gold closed at $1219.90 an ounce, down $1.10

Silver settled at $15.46 an ounce, up $0.03

Copper finished at $2.77 a pound, up $0.02

Crude Oil is at $66.75 barrel, down $0.06

Bitcoin Investment Trust (GBTC) ended at $9.74 up $0.01

Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY