Small-Caps Stay Strong 03-07-2018

MARKET SUMMARY
U.S. markets mixed on Wednesday following the resignation of President Trump’s top economic adviser, Gary Cohn, but showed strength in the final hour of trading. The departure of Cohn elevated Wall Street’s concerns over the planned tariffs on aluminum and steel imports that could get signed as early as this week. Near-term support levels held while volatility eased following the morning and midday nervousness.

The Russell 2000 rose 0.8% after trading to a peak of 1,576 into the closing bell and holding the 1,550 level on the opening weakness. The Nasdaq was up 0.3% after pushing a high of 7,403 while clearing 7,400 for the first time since late January. Although this level failed to hold, it was another bullish signal for the market.

The S&P 500 slipped 0.1% after trading to a low of 2,701 while holding 2,700 for a third-straight session. The Dow was down 0.3%, after tumbling to a low of 24,535 and briefly falling into negative territory for the year. The close above 24,800 keeps resistance at the 25,000 level in play.

TRADE OF THE DAY

ANALYST UPGRADES / DOWNGRADES
Donaldson (DCI) upgraded to Buy on valuation at Gabelli
Ooma (OOMA) upgraded to Neutral from Underperform at BofA/Merrill
Quest Diagnostics (DGX) upgraded to Buy from Hold at Argus

Carvana (CVNA) downgraded to Market Perform from Outperform at BMO Capital
Gogo (GOGO) downgraded to Neutral from Buy at Guggenheim
Netflix (NFLX) downgraded to Hold from Buy at Stifel

EARNINGS
Thursday’s scheduled earnings (EST):
Before the open: American Eagle Outfitters (AEO), BG Staffing (BGSF), Burlington Stores (BURL), Cantel Medical (CMD), Del Frisco’s Restaurants (DFRG), Embraer (ERJ), Fly Leasing (FLY), FuelCell Energy (FCEL), Global Partners (GLP), International Game Technology (IGT), Juniper Pharmaceuticals (JNP), Kroger (KR), RadNet (RDNT), Tech Data (TECD), US Physical Therapy (USPH), Vail Resorts (MTN)

After the close: Autoinfo (AUTO), Chuy’s Holdings (CHUY), Cooper Companies (COO), El Pollo Loco (LOCO), Finisar (FNSR), KMG Chemicals (KMG), Marvell Technology (MRVL), Peak Resorts (SKIS), Providence Service (PRSC), TPI Composites (TPIC), United National Foods (UNFI), VeriFone Holdings (PAY), WideOpenWest (WOW), ZTO Express (ZTO)

UPCOMING ECONOMIC NEWS
Thursday’s economic reports (EST):
Jobless Claims – 8:30am
Personal Income and Outlays – 8:30am
PMI Manufacturing Index – 9:45am
Bloomberg Consumer Comfort Index – 9:45am
ISM Manufacturing Index – 10:00am
Construction Spending – 10:00am

METALS / OIL
Gold closed at $1,323.60 an ounce, down $7.60
Silver closed at $16.49 an ounce, down $0.29
Copper finished at $3.13 a pound, down $0.02
Crude Oil closed at $62.33 a barrel, up $0.18
Bitcoin Investment Trust (GBTC) settled at $15.74, down $1.42

Make it a great day!

Todd Mitchell

QUOTE OF THE DAY