U.S. markets continued their record setting pace to start the week amid reports of an agreement with Mexico on a new trade deal. President Trump, who confirmed an agreement with Mexico to replace the NAFTA deal, said he would begin negotiations immediately with Canada.
The continued momentum came on light volume as the end of Wall Street vacations and the summer wind down. One important note was volatility, which stayed slightly elevated despite higher market highs.
The Dow surged 1% while topping out at 26,067. Upper resistance at 25,800-26,000 was cleared with fresh hurdles at 26,200-26,400 on continued strength.
The Nasdaq jumped 0.9% following its run just south of 8,025 and fresh all-time high. New resistance is at 8,050-8,150 with continued closes above the 8,000 level.
The S&P 500 rose 0.8% after trading to a lifetime peak of 2,898. Lower resistance is at 2,900-2,925 held with a close above the former being a continued bullish development.
The Russell 2000 was up 0.2% after testing an intraday record high of 1,737. Lower resistance at 1,740-1,750 held with a move below 1,720 signaling a possible short-term top.
Financial led sector strength after rallying 1.4% while Materials and Industrials added 1.3%. Communication Services and Technology soared 1% and 0.9%, respectively
Utilities paced sector weakness after falling 0.6%. Real Estate gave back 0.2%.
First Majestic (AG) upgraded to Outperform from Market Perform at BMO Capital
Portola Pharmaceuticals (PTLA) upgraded to Neutral from Underperform at Credit Suisse
Steel Dynamics (STLD) upgraded to Overweight from Equal Weight at Morgan Stanley
Chipotle (CMG) downgraded to Underperform from Neutral at Wedbush
Oasis Midstream Partners (OMP) downgraded to Neutral from Overweight at JPMorgan
Hibbett Sports (HIBB) downgraded to Hold from Buy at Canaccord
Tuesday’s earnings announcements (EST):
Before the open: Bank of Montreal (BMO), Best Buy (BBY), BJ’s Wholesale Club (BJ), Catalent (CTLT), DSW (DSW), Hain Celestial Group (HAIN), Standex International (SXI), Tiffany & Company (TIF)
After the close: Box (BOX), H&R Block (HRB), Lannett Company (LCI), NCI Building Systems (NCS), Ooma (OOMA), Prospect Capital (PSEC), ScanSource (SCSC), Shoe Carnival (SCVL), Tilray (TLRY), Yirendai (YRD)
UPCOMING ECONOMIC NEWS
Tuesday’s economic reports (EST):
Retail Inventories – 8:30am
International Trade in Goods – 8:30am
Wholesale Inventories – 8:30am
Redbook – 8:55am
S&P Corelogic Case-Shiller – 9:00am
Consumer Confidence – 10:00am
Richmond Fed Manufacturing Index – 10:00am
State Street Investor Confidence – 10:00am
METALS / OIL
Gold closed at $1,216.00 an ounce, up $2.70
Silver settled at $14.86 an ounce, up $0.07
Copper finished at $2.71 a pound, up $0.01
Crude Oil is at $68.52 barrel, unchanged
Bitcoin Investment Trust (GBTC) ended at $9.34 up $0.16
Make it a great day!
QUOTE OF THE DAY