Major Moving Averages Hold

MARKET SUMMARY
U.S. markets showed continued volatility with heavy losses on the open and a continued backtest towards November support levels. The major moving averages held with choppy trading afterwards before a surge to the upside into the closing bell.

The Dow gained 2.3% after testing a low of 23,778 and dipping below its 100-day moving average before recovering to close just below the 25,000 level.

The S&P 500 jumped 1.7% to finish just below the 2,700 level following an 108-point intraday swing and a low of 2,597.

The Nasdaq was up 2.1% after trading to a low of 6,824 while holding its 100-day moving average and closing back above the 7,000 level. The Russell 2000 rallied 1.1% after falling to a low of 1,461 and coming within a fifth-point of breaching its 200-day moving average while closing back above the 1,500 level.

TRADE OF THE DAY


ANALYST UPGRADES / DOWNGRADES

Micron (MU) upgraded to Overweight from Sector Weight at KeyBanc
RBS (RBS) upgraded to Neutral from Underperform at BofA/Merrill
Skyworks (SWKS) upgraded to Outperform from Market Perform at BMO Capital

Catalent (CTLT) downgraded to Equal Weight from Overweight at Stephens Exxon Mobil (XOM) downgraded to Underweight from Overweight at Barclays Radware (RDWR) downgraded to In-Line from Outperform at Imperial Capital

EARNINGS
Wednesday’s scheduled earnings include:
Before the open: Ball (BLL), Berry Plastics (BERY), Brink’s (BCO), Exelon (EXC), Hasbro (HAS), Humana (HUM), Jacobs Engineering (JEC), Michael Kors (KORS), Peabody Energy (BTU), Sanofi (SNY), Timken (TKR), Walker & Dunlop (WD)
After the close: Allstate (ALL), Crown Holdings (CCK), Diodes (DIOD), ePlus (PLUS), Flowers Foods (FLO), FormFactor (FORM), iRobot (IRBT), Knowles (KN), Limelight Networks (LLNW), Netease.com (NTES), NXP Semiconductors (NXPI), Prudential Financial (PRU), Synaptics (SYNA), Take-Two Interactive Software (TTWO), Tesla (TSLA), Yelp (YELP), Zynga (ZNGA)

UPCOMING ECONOMIC NEWS
Wednesday’s economic reports (EST):
MBA Mortgage Applications – 7:00am
Consumer Credit – 3:00pm

METALS / OIL
Gold closed at $1,329.50 an ounce, down $7.00
Silver settled at $16.58 an ounce, down $0.09
Copper finished at $3.18 a pound, down $0.04
Crude Oil closed at $63.86 a barrel, down $0.29
Bitcoin Investment Trust (GBTC) settled at $12.31, up $2.26

 

Make it a great day!

Todd Mitchell

QUOTE OF THE DAY