Selling Pressure Hits Final Hour of Trading

MARKET SUMMARY

U.S. markets traded in positive territory for much of Friday’s session before selling pressure hit in the final hour of trading. Some of the early momentum came from the Financial stocks following solid stress test results on the country’s 30 largest banks.

The late day pullback resulted in a mixed session and a weekly pullback for the major indexes. However, it was a mostly bullish month ahead of a shortened week which could heighten volatility with much of Wall Street on vacation.

The Dow rose 0.2% and was up for the 3rd time in four sessions after trading to an intraday high of 24,509. The close below the 200-day moving average for the 4th-straight session remains slightly bearish although a bottoming process could be forming if support at 24,000 holds.

The S&P 500 climbed 0.1% following the push to 2,743 shortly after the opening bell. A mini trading range has development from last week’s action with major resistance at 2,750 and crucial support at 2,700.

Both the Dow and S&P 500 declined 1.3% for the week with the former index down 0.6% for June and the latter up 0.5%.

The Nasdaq was higher by 70 points during the morning action but gained just 0.1% despite reaching a peak of 7,573. Last week’s low tapped 7,419 with a close below 7,400 and the 50-day moving average being a bearish development.

The Russell 2000 dipped 0.1% despite the push to 1,656 shortly after the open. The index has closed lower in 5 of the past 7 sessions with a move below major support at 1,625-1,620 and the 50-day moving average being a bearish development.

The Russell 2000 fell 2.5% for the week while the Nasdaq gave back 2.4%. For the month, Tech rose 0.9% and the small-caps added 0.6%.

For the quarter, the Russell 2000 jumped 7.4% and the Nasdaq soared 6.3%. YTD, the indexes are up 7% and 8.8%, respectively. The S&P 500 posted a quarterly gain of 2.9% and is up 1.7% for 2018. The Dow rose 0.7% over the 3-month period but is down 1.8% for the year.

ANALYST UPGRADES/DOWNGRADES

American Express (AXP) upgraded to Buy from Neutral at Buckingham
Duluth Holdings (DLTH) upgraded to Outperform from Market Perform at William Blair
Sirius XM (SIRI) upgraded to Outperform from Market Perform at Barrington
Accenture (ACN) downgraded to Neutral from Buy at BofA/Merrill
Diageo (DEO) downgraded to Market Perform from Outperform at Bernstein
Rexford Industrial (REXR) downgraded to Neutral from Buy at DA Davidson

EARNINGS

Monday’s earnings reports (EST): 

Before the open: Roadrunner Transportation (RRTS)
After the close: Herman Miller (MLHR)

UPCOMING ECONOMIC NEWS

Monday’s economic reports (EST): 

PMI Manufacturing Index – 9:45am
ISM Manufacturing Index – 10:00am
Construction Spending – 10:00am

METALS / OIL

Gold closed at $1254.50 an ounce, up $3.50

Silver settled at $16.20 an ounce, up $0.16

Copper finished at $2.97 a pound, unchanged

Crude Oil is at $74.25 barrel, up $0.80

Bitcoin Investment Trust (GBTC) ended at $8.53 down $0..41

   Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY