Small-Caps Clear 50-Day MA 04-10-2018

MARKET SUMMARY
U.S. markets rallied and closed higher for a second-straight session after comments made by Chinese President Xi Jinping. His remarks suggested a lesser aggressive approach with respect to trade and tariffs, which helped to ease concerns about an escalating conflict between the world’s two largest economies. However, volatility remained slightly heightened and above a key level of support ahead of tomorrow’s FOMC minutes.

The Nasdaq jumped 2.1% after making an intraday push to 7,117 and its 100-day moving average while recovering the 7,000 level in the process. The Russell 2000 surged 1.9% after tapping an intraday high of 1,548 while closing back above its 50-day moving average for the first time in a dozen sessions.

The Dow rallied 1.8% on its run to 24,511 to regain the 24,000 level with last week’s peak of 25,611 the next key hurdle to clear. The S&P 500 soared 1.7% after testing a high of 2,665 but remains roughly 2% away from clearing its 50-day moving average.

TRADE OF THE DAY

ANALYST UPGRADES / DOWNGRADES
Illinois Tool Works (ITW) upgraded to Conviction Buy from Buy at Goldman Sachs
Live Nation (LYV) upgraded to Buy from Neutral at Citi
Ulta Beauty (ULTA) upgraded to Overweight from Neutral at Piper Jaffray

Hershey (HSY) downgraded to Sell from Neutral at UBS
Monsanto (MON) downgraded to Market Perform from Outperform at BMO Capital
Radian Group (RDN) downgraded to Sector Perform from Outperform at RBC Capital

EARNINGS
Wednesday’s earnings:
Before the open: Fastenal (FAST), Hanwha Q Cells (HQCL), Kush Bottles (KSHB), Top Image Systems (TISA)
After the close: Bed Bath & Beyond (BBBY), Richardson Electronics (RELL)

UPCOMING ECONOMIC NEWS
Wednesday’s economic reports (EST):
MBA Mortgage Applications – 7:00am
Consumer Price Index – 8:30am
Atlantic Fed Business Inflation Expectations – 10:00am
FOMC Minutes – 2:00pm

METALS / OIL
Gold closed at $1,345.90 an ounce, up $5.80
Silver closed at $16.60 an ounce, up $0.07
Copper finished at $3.13 a pound, up $0.06
Crude Oil closed at $65.58 a barrel, up $1.25
Bitcoin Investment Trust (GBTC) settled at $11.05 up $0.50

Make it a great day!

Todd Mitchell

QUOTE OF THE DAY