Small-Caps Clear 50-Day MA

U.S. markets showed strength for a third-straight session following a pullback in the 10-year yield to its lowest levels since mid-month. The recent gains have recaptured roughly 80% of the 10% pullback from the all-time highs with the major indexes showing momentum ahead of Fed news on Tuesday.

The Dow jolted 1.6% after trading to a high of 25,732 while the S&P 500 surged 1.2% while reaching an intraday peak of 2,780. Both indexes face near-term and late January resistance at 26,000 and 2,800, respectively, with closes above these levels being continued bullish signals.

The Nasdaq jumped 1.8% after closing a half-point off its intraday high of 7,421 while clearing the 7,400 level for the first time since the end of January. The index is back in positive territory for the month following today’s rally.

The Russell 2000 gained 0.7% after making a run north of 1,560, but more importantly, the small-caps closed above their 50-day moving average for the first time since the start of February.


Duke Energy (DUK) upgraded to Buy from Hold at Deutsche Bank
Finish Line (FINL) upgraded to Positive from Neutral at Susquehanna
HP (HPQ) upgraded to Overweight from Neutral at JPMorgan

Albermarle (ALB) downgraded to Underweight from Equal Weight at Morgan StanleyHalliburton (HAL) downgraded to Neutral from Buy at BofA/Merrill
Mattel (MATWealth Strength IndexMAT is Moderately Down and trending Down) downgraded to Underperform from Hold at Jefferies

Tuesday’s scheduled earnings (EST):
Before the open: American Tower (AMT), AutoZone (AZO), Bank of Montreal (BMO), Carter’s (CRI), Discovery Communications (DISCAWealth Strength IndexDISCA is Flat and trending Up), Eaton Vance (EV). Extended Stay America (STAY), Global Net Lease (GNL), LGI Homes (LGIH), Lumber Liquidators (LL), Macy’s (M), Perrigo (PRGO), Sempra Energy (STE), Steven Madden (SHOO), Toll Brothers (TOL), TopBuild (BLD), Vitamin Shoppe (VSI)

After the close: Holdings (ALRM), B&G Foods (BGS), Camping World Holdings (CWH), Darling International (DAR), Etsy (ETSY), Express Scripts (ESRX), Hertz Global Holdings (HTZ), Imax (IMAX), Jazz Pharmaceuticals (JAZZ), Kaman (KAMN), Papa John’s International (PZZA), Priceline Group (PCLN), Rogers (ROG), Square (SQ), Tivo (TIVO), Veeva Systems (VEEV), Workday (WDAY)

Tuesday’s economic reports (EST):
Durable Goods Orders – 8:30am
International Trade in Goods – 8:30am
Retail Inventories – 8:30am
Wholesale Inventories – 8:30am
Redbook – 8:55am
S&P Case-Shiller – 9:00am
FHFA House Price Index – 9:00am
Consumer Confidence – 10:00am
Richmond Fed Manufacturing Index – 10:00am
State Street Investor Confidence – 10:00am

Gold closed at $1,332.80 an ounce, up $2.50
Silver closed at $16.55 an ounce, up $0.07
Copper finished at $3.22 a pound, up $0.01
Crude Oil closed at $64.02 a barrel, up $0.47
Bitcoin Investment Trust (GBTC) settled at $17.61, up $0.80

Make it a great day!

Todd Mitchell