Market Mixed on New Trade Agreement

U.S. markets opened strong after American and Canadian representatives agreed to a new trade deal late Sunday night, known as the U.S.-Mexico-Canada Agreement or USMCA. The trade optimism overshadowed a bit of weak economic data that stalled momentum with the small-caps slacking for much of the session after an opening pop.

Fed speak was heavy but mostly positive as the major indexes pushed prior resistance levels while closing mixed. Volatility pushed near-term support but levels that also held into the closing bell.

The Dow held positive territory throughout the session after jumping 0.7% while trading to a high just south of 26,738. Fresh resistance at 26,750-26,800 held with the all-time high at 26,769 from the September 21st peak.

The S&P 500 was higher by 0.4% after holding green throughout the session and tapping a high of 2,937. Fresh and lower resistance at 2,940-2,950 held with the index missing its record high by 4 points.

The Nasdaq dipped 0.1% despite reaching an intraday peak of 8,107 and missing its all-time high by 26 points. Upper resistance at 8,075-8,100 held with continued closes above this level keeping 8,150-8,200 in play.

The Russell 2000 tumbled 1.4% following the plunge to 1,669. Fresh support at 1,670-1,660 held with a move below the latter being a continuing bearish development.

Energy and Materials led sector strength after jumping 1.4% and 1%, respectively. Industrials rose 0.9% while Health Care and Technology were up 0.6% and 0.5%.

Real Estate sank 0.8% to pace sector laggards. Communication Services were off 0.4% while Consumer Discretionary and Utilities were lower by 0.3%.


Biogen (BIIBWealth Strength IndexBIIB is Moderately Flat and trending Down) assumed with an Overweight from Neutral at Cantor Fitzgerald
LogMeln (LOGM) upgraded to Outperform from Perform at Oppenheimer
Teva (TEVA) upgraded to Conviction Buy from Buy at Goldman Sachs
Autohome (ATHM) downgraded to Sell from Hold at 86 Research
Chipotle (CMG) downgraded to Underperform from Perform at Oppenheimer
Intel (INTCWealth Strength IndexINTC is Moderately Flat and trending Down) downgraded to Underweight from Equal Weight at Barclays


Tuesday’s earnings announcements (EST): 

Before the open: ​Lamb Weston Holdings (LW), Paychex (PAYXWealth Strength IndexPAYX is Moderately Flat and trending Down), PepsiCo (PEP)
After the close: Landec (LNDC), NovaGold Resources (NG)

Tuesday’s economic reports (EST): 

​Redbook – 8:55am


Gold closed at $1,191.70 an ounce, down $4.50

Silver settled at $14.51 an ounce, down $0.20

Copper finished at $2.79 a pound, down $0.02

Crude Oil is at $75.59 barrel, up $2.34

Bitcoin Investment Trust (GBTC) ended at $7.73 down $0.2

   I hope this helps you prepare for tomorrow. Have a great evening.

   Todd Mitchell