Rebound Rally Unimpressive as Blue-Chips Slip

U.S. markets showed strength for the majority of the session with some late day selling pressure resulting in a mixed finish. A report that White House trade advisor Peter Navarro would not be attending a Trump-Xi meeting helped fuel the rebound following 2 days of heavy selling pressure.

The news could be interpreted as a more hopeful omen on the trade front ahead of the G20 meetings in a couple of weeks.

However, volatility remains slightly elevated after near-term support levels held ahead of Thursday’s holiday and Friday’s shortened session.

The Russell 2000 rallied 1.3% after trading to an intraday high of 1,499. Fresh resistance at 1,490-1,500 held with continued closes above the latter signaling a possible near-term bottom.

The Nasdaq rose 0.9% with the morning peak tapping 7,029. Resistance at 7,000-7,050 was split with both levels holding into the closing bell.

The S&P 500 was higher by 0.3% following the intraday push to 2,670. Prior resistance at 2,675-2,700 held with the close below 2,650 being a slightly bearish signal for Friday.

The Dow dipped a point, or 0.0%, despite testing a session high of 24,669. Lower resistance at 24,600-24,800 was breached but a level that held into the closing bell.

Energy led sector strength after rising 1.6%. Communication Services and Consumer Discretionary were up 1.2% and 1.1%, respectively.

Utilities paced sector laggards after sinking 1.5% while Consumer Staples fell 0.8%.

Analyst Upgrades / Downgrades
Best Buy (BBY) upgraded to Neutral from Underperform at Wedbush / Tandem Diabetes (TNDM) upgraded to Outperform from Neutral at Baird / Wix.com (WIX) upgraded to Outperform from Sector Perform at RBC Capital

Alliant Energy (LNT) downgraded to Underperform from Neutral at BofA/Merrill / Credit Suisse (CS) downgraded to Market Perform from Outperform at Keefe Bruyette / Lowe’s (LOW) downgraded to Hold from Buy at Stifel

Friday’s Economic Reports

PMI Composite Flash – 10:00am

Friday’s Earnings Announcements
Before the open: Diana Containerships (DCIX), StealthGas (GASS), Sunlands Online Education (STG)

After the close: No major announcements.

Metals / Oil

Gold closed at $1,228.00 an ounce, up $6.80
Silver settled at $14.50 an ounce, up $0.23
Copper finished at $2.79 a pound, up $0.02
Crude Oil is at $54.50 a barrel, up $1.26
Bitcoin Investment Trust (GBTC) ended at $5.03,
up $0.14