Small-Caps Reclaim 50-Day MA

U.S. markets showed continued weakness but rebounded off the midday lows to settle mostly higher despite some sharp remarks from Commerce Secretary Wilbur Ross on China trade negotiations. Concerns over slower economic growth on higher inflation along with the start of the FOMC meeting also played a role in the intraday weakness.

However, the two-day meeting is expected to be a nonevent with Wall Street not anticipating any rate action, nor any significant change in the policy statement.

The Nasdaq gained 0.9% despite testing a low of 7,036 while holding crucial support at the 7,000 level for the 7th-straight session. The Russell 2000 was higher by 0.6% following the back-test to 1,527 but closed back above its 50-day moving average.

The S&P 500 gained 0.3% after trading down to 2,625 and coming within a dozen points of breaching its 200-day moving average. The Dow dropped 0.3% after tumbling to a session low of 23,808 before rebounding just above its 200-day moving average to hold the 24,000 level for the 5th-straight session.

Fox Factory (FOXF) upgraded to Buy from Neutral at BofA/Merrill
Marriott Vacations (VAC) upgraded to Buy from Hold at SunTrust
Qorvo (QRVO) upgraded to Overweight from Equal Weight at Barclays

British American Tobacco (BTI) downgraded to Neutral from Overweight at Piper Jaffray
Financial Engines (FNGN) downgraded to Hold from Buy at Jefferies
Texas Roadhouse (TXRH) downgraded to Hold from Buy at Maxim

Wednesday’s earnings Before the OPEN: Avista (AVA), Belden (BDC), CDW (CDW), CVS Health (CVS), Exelon (EXC), Garmin (GRMN), Harris (HRS), Littelfuse (LFUS), Mastercard (MA), NiSource (NI), Pitney Bowes (PBI), Radware (RDWR), SodaStream International (SODA), Wayfair (W), Zoetis (ZTS)

Wednesday’s earnings After the CLOSE: 3D Systems (DDD), American International Group (AIG), Avis Budget Group (CARS), Caesars Entertainment (CZR), Cirrus Logic (CRUS), DexCom (DXCM), Equinix (EQIX), FireEye (FEYE), Gladstone Capital (GLAD), Habit Restaurants (HABT), Hologic (HOLXWealth Strength IndexHOLX is Moderately Up and trending Up), Ingevity (NGVT), James River Group (JRVR), Kraft Heinz (KHCWealth Strength IndexKHC is Flat and trending Up), Life Storage (LSI), Masimo (MASI), Metlife (MET), Noble Drilling (NE), PDC Energy (PDCE), Qorvo (QRVO), Ryerson (RYI), Square (SQ), Tesla (TSLAWealth Strength IndexTSLA is Moderately Flat and trending Up), Valvoline (VVV), Williams Companies (WMB), Zynga (ZNGA)

Wednesday’s economic reports (EST):
MBA Mortgage Applications – 7:00am
ADPWealth Strength IndexADP is Moderately Up and trending Up Employment Report – 8:15am
FOMC Meeting Announcement – 2:00pm





Make it a great day!

Todd Mitchell