Market Rallies on Fed Minutes/ Trade Talk

MARKET SUMMARY

U.S. markets showed strength throughout Thursday’s session following news that Germany and President Trump may find common ground to negotiate on tariffs. There was some volatility ahead of the Fed minutes as the major indexes gave up much of their early gains but still held positive territory.

The Fed minutes noted a number of favorable factors, including the strong labor market, stimulative fiscal policies accommodative financial conditions and high levels of confidence. This helped the market sustain its gains into the close as a mini trading range continues ahead of 2Q earnings.

The Dow gained 0.8% following the intraday push to 24,372. The index continues to struggle with its 200-day moving average although it did clear and hold this level for the first time in 8 sessions.

The S&P 500 soared 0.9% after testing a high of 2,737 and closing a point off its peak. The index has been in a lowered trading range for 8 sessions with a close above 2,750 being a bullish development. Continued closes below 2,700 would be a bearish signal.

The Nasdaq jumped 1.1% after trading to a high of 7,589. Continued closes above resistance at the 7,600 level would suggest additional strength and a breakout of the current trading range.

The Russell 2000 extended its win streak to 3-straight sessions after surging 1.2% while reaching an intraday peak north of 1,679 into the closing bell. Upper resistance at 1,670-1,675 held into the closing bell with a move above 1,685 signaling additional strength towards a retest of the 1,700 level and fresh all-time highs.

ANALYST UPGRADES/DOWNGRADES

Advanced Energy (AEIS) upgraded to Outperform from Market Perform at Raymond James
Fiat Chrysler (FCAU) upgraded to Buy from Hold at Jefferies
Qorvo (QRVO) upgraded to Overweight from Sector Weight at KeyBanc
Clean Energy (CLNE) downgraded to Underperform from Market Perform at Raymond James
Domino’s Pizza Enterprises (DPZUF) downgraded to Sell from Neutral at Citi
Munich Re (MURGY) downgraded to Neutral from Overweight at JPMorgan

EARNINGS

Friday’s earnings reports (EST): 

No major announcements

UPCOMING ECONOMIC NEWS

Thursday’s economic reports (EST): 

Jobs Report – 8:30am
International Trade in Goods – 8:30am
Baker-Hughes Rig Count – 1:00pm

METALS / OIL

Gold closed at $1258.80 an ounce, up $5.30

Silver settled at $16.10 an ounce, up $0.06

Copper finished at $2.83 a pound, down $0.09

Crude Oil is at $73.00 barrel, down $1.14

Bitcoin Investment Trust (GBTC) ended at $10.05 up $0.04

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY