Record Highs Remain in Play on Bullish Breakout

MARKET SUMMARY

U.S. markets closed Friday with solid gains and fresh record highs following soothing remarks from Fed Chair Jerome Powell on the economy. Powell defended the central bank’s plan to raise interest rates gradually while highlighting the strength in the economy and strong corporate results.

The major indexes got a nice pop,on the news but remained relatively flat into the closing bell. Volatility was calm but held key support as a number of ongoing political shenanigans had little effect on the overall market..

The Nasdaq rallied 0.9% after peaking at a record high of 7,949. Major resistance at 7,900 was cleared and held with blue-sky territory towards 8,000-8,100 as long as this level holds.

The Russell 2000 rose 0.5% following its late session run just shy of 1,727 and fresh all-time high. There is fluff to 1,740-1,750 on continued strength.

For the week, the small-caps surged 2% while Tech was higher by 1.7%.

The S&P 500 added 0.6% after testing a lifetime high of 2,876. Fresh resistance is at 2,900-2,925 on continued momentum.

The Dow was up 0.5% following a mid session push to 25,826. Lower resistance at 25,800-26,000 held with a close above the latter being a continued bullish signal.

The S&P 500 gained 0.9% and was higher for the 2nd-straight week. The Dow closed higher for the 7th time in 8 weeks after rising 0.5%.

Communication Services surged 1.5% to pace sector strength while Materials and Technology soared 1.3% and 1%, respectively.

Consumer Staples was the only sector laggard after giving back 0.2%.

For the week, Energy and Consumer Discretionary zoomed 2.2% and 1.6%.
Utilities and Consumer Staples fell 1.4% and 0.9%, respectively.

ANALYST UPGRADES/DOWNGRADES

Netflix (NFLXWealth Strength IndexAAPL is Extremely Up and trending Up) upgraded to Buy from Hold at SunTrust
Sanderson Farms (SAFM) upgraded to Overweight from Equal Weight at Stephens
Children’s Place (PLCE) upgraded to Buy from Neutral at Monness Crespi
L Brands (LB) downgraded to Equal Weight from Overweight at Morgan Stanley
Hormel Foods (HRL) downgraded to Equal Weight from Overweight at Barclays
Secureworks (SCWX) downgraded to Sell from Neutral at UBS

EARNINGS

Monday’s earnings announcements (EST): 

Before the open: American Woodmark (AMWD
After the close: Bilibili (BILI), Heico (HEI), Phibro Animal Health (PAHC), RYB Education (RYB)

UPCOMING ECONOMIC NEWS 
Monday’s economic reports (EST): 

​Chicago Fed National Activity Index – 8:30am
Dallas Fed Manufacturing Survey – 10:30am

METALS / OIL

Gold closed at $1,213.30 an ounce, down $9.30

Silver settled at $14.79 an ounce, up $0.29

Copper finished at $2.70 a pound, up $0.05

Crude Oil is at $68.52 barrel, up $0.69

Bitcoin Investment Trust (GBTC) ended at $9.18 up $0.36

Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY