Small-Caps Clear 50-Day MA

MARKET SUMMARY
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.

TRADE OF THE DAY

ANALYST UPGRADES / DOWNGRADES
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 (MAT) downgraded to Underperform from Hold at Jefferies

EARNINGS
Tuesday’s scheduled earnings (EST):
Before the open: American Tower (AMT), AutoZone (AZO), Bank of Montreal (BMO), Carter’s (CRI), Discovery Communications (DISCA), 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: Alarm.com 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)

UPCOMING ECONOMIC NEWS
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

METALS / OIL
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

QUOTE OF THE DAY