Market Stays Nervous

U.S. markets fell for the second-straight session on lower lows and a continued backtest towards near-term and mid-month support. The pullback comes ahead of tomorrow’s update from the Fed on interest rates and a likely reason for the continued nervousness.

The Dow dropped 1.4% after trading to a low of 26,028 while holding the 26,000 for the 10th-straight session.

The S&P 500 fell 1.1% after testing 2,818 shortly after the open while holding the 2,800 level for the 8th-straight session.

The Russell 2000 tumbled 1% after kissing 1,579 with the January 18th and 19th lows at 1,576 and 1,575 holding. The Nasdaq stumbled 0.9%, as well, after bottoming at 7,373 within the first 30 minutes of action. The 7,400 level held for the 7th-straight session but the lower low over this time frame remains a slight concern.

Albemarle (ALB) upgraded to Buy from Neutral at UBS
CVS Health (CVS) upgraded to Strong Buy from Buy at Needham
Intel (INTC) upgraded to Buy from Neutral at Citi

AbbVie (ABBV) downgraded to Underperform from Market Perform
Alaska Air (ALK) downgraded to Underweight from Neutral at JPMorgan
iRobot (IRBT) downgraded to Neutral from Buy at Sidoti

Wednesday’s scheduled earnings include:
Before the open: (FLWS), Anthem (ANTM), Boeing (BA), Check Point Software (CHKP), DR Horton (DHI), Eli Lilly & Co. (LLY), Evercore (EVR), Ingersoll-Rand (IR), Johnson Controls (JCI), Littelfuse (LFUS), Pitney Bowes (PBI), Textron (TXT), Tupperware (TUP), Xerox (XRX)

After the close: Aflac (AFL), AT&T (T), Cadence Designs (CDNS), Citrix Systems (CTXS), Duke Realty (DRE), eBay (EBAY), Facebook (FB), Kirby (KEX), Landstar System (LSTR), MetLife (MET), Microsoft (MSFT), Mondelez International (MDLZ), PayPal (PYPL), Qualcomm (QCOM), ServiceNow (NOW), Symantec (SYMC), Tractor Supply (TSCO), United States Steel (X), Vertex Pharmaceuticals (VRTX)

Wednesday’s economic reports (EST):
MBA Mortgage Applications – 7:00am
ADP Employment Report – 8:15am
Employment Cost Index – 8:30am
Chicago PMI – 9:45am
Pending Home Sales Index – 10:00am
FOMC Meeting Announcement – 2:00pm

Gold closed at $1,340.00 an ounce, down $0.30
Silver settled at $17.06 an ounce, down $0.07
Copper finished at $3.18 a pound, down $0.01
Crude Oil closed at $63.99 a barrel, down $1.57
Bitcoin Investment Trust (GBTC) settled at $17.61, up $1.63 (Note: The 91-1 stock-split took place after Friday’s closing bell)

Make it a great day!

Todd Mitchell