Small-Caps Rebound, Lead Momentum

U.S. markets closed higher across the board for the first time this week with the small-caps leading momentum. The blue-chips continued their record setting run while the other major indexes remain in striking distance of fresh lifetime peaks.

Economic news was mostly positive along with Fedspeak that dominated headlines throughout the day. Volatility closed at its lowest level since early August and is continuing to signal short-term market strength.

The Russell 2000 snapped a 2-session slide after soaring 0.9% while tapping a high of 1,677. Fresh and lower resistance at 1,675-1,680 held with a close the latter being a continued bullish development.

The Nasdaq was up 0.3% after reaching a peak of 8,053 while clearing and holding the 8,000 level throughout the day. Resistance at 8,100-8,150 held with the late August all-time high at 8,133.

The Dow advanced 0.2% to extend its winning streak to 5-straight sessions after testing a fresh all-time high of 26,951. The move above lower resistance at 26,800-27,000 was bullish with continued closes above the latter getting 27,250-27,500 in play.

The S&P 500 rose 0.1% following the run to 2,939. The index missed a new record peak by just over a point with a close above 2,940 being a continued bullish development.

Financials and Energy led sector strength after rising 0.9% and 0.8%, respectively.

Utilities and Real Estate paced sector laggards after giving back 1.2% while Consumer Staples sank 1%.


Tempur Sealy (TPX) upgraded to Neutral from Sell at UBS
Michael Kors (KORS) upgraded to Buy from Neutral at Citi.
Wingstop (WING) upgraded to Buy from Neutral at Guggenheim
Honda (HMC) downgraded to Outperform from Buy at CLSA
Nike (NKE) downgraded to Hold from Buy at HSBC
Oracle (ORCL) downgraded to In Line from Outperform at Evercore ISI​


Thursday’s earnings announcements (EST): 

Before the open: ​​​Constellation Brands (STZ), International Speedway (ISCA)
After the close: Costco Wholesale (COST), Smart Global Holdings (SGH)

Thursday’s economic reports (EST): 

Challenger Job-Cut Report – 7:30am
Jobless Claims – 8:30am
Factory Orders – 10:00am


Gold closed at $1,202.90 an ounce, down $4.10

Silver settled at $14.67 an ounce, down $0.02

Copper finished at $2.83 a pound, up $0.02

Crude Oil is at $76.22 barrel, up $1.13

Bitcoin Investment Trust (GBTC) ended at $7.36 down $0.04

   I hope this helps you prepare for tomorrow. Have a great evening.

   Todd Mitchell