Small-Caps Surge Past 50-Day MA

MARKET SUMMARY
U.S. markets closed higher after reaching their best levels shortly after the open. The gains were attributed to easing concerns over the prospects of a global trade war and the possibility of talks between North and South Korea.
The Russell 2000 rallied 1% after reaching 1,562 into the closing bell while clearing and holding its 50-day moving average. This was a bullish development. The Nasdaq was up 0.6% after testing an intraday high of 7,378 and is just 2% away from all-time highs.

The S&P 500 added 0.3% while trading to a high of 2,732 and holding 2,700 on weakness afterwards. The Dow rose 9 points, or 0.04%, after reaching a peak of 24,995 and failing the 25,000 level for the second-straight session. Both indexes remain below their 50-day moving averages.

ANALYST UPGRADES / DOWNGRADES
First Republic (FRC) upgraded to Overweight from Equal Weight at Barclays
Herbalife Nutrition (HLF) upgraded to Buy from Neutral at Citi
Mylan (MYL) upgraded to Overweight from Equal Weight at Morgan Stanley
Canadian National (CNI) downgraded to Underperform from Neutral at BofA/Merrill
GrubHub (GRUB) downgraded to Neutral from Buy at BofA/Merrill
Spectra Energy Partners (SEP) downgraded to Hold from Buy at Stifel

EARNINGS
Wednesday’s scheduled earnings include:
Before the open: Abercrombie & Fitch (ANF), Autohome (ATHM), Dollar Tree Stores (DLTR), Momo (MOMO), Plug Power (PLUG), Speedway Motorsports (TRK), Trevena (TRVN)
After the close: 58.com (WUBA), BlackRock Capital (BKCC), Caesars Entertainment (CZR), Costco Wholesale (COST), CyroLife (CRY), GeoPark (GPRK), Hamilton Beach (HBB), MeetMe (MEET), PCM (PCMI), Rosetta Stone (RST), Thor Industries (THO), Zagg (ZAGG)

UPCOMING ECONOMIC NEWS
Wednesday’s economic reports (EST):
MBA Mortgage Applications – 7:00am
ADP Employment Report – 8:15am
International Trade in Goods – 8:30am
Productivity ad Costs – 8:30am
Beige Book – 2:00pm
Consumer Credit – 3:00pm

METALS / OIL
Gold closed at $1,335.20 an ounce, up $15.30
Silver settled at $16.78 an ounce, up $0.37
Copper finished at $3.15 a pound, up $0.03
Crude Oil closed at $62.28 a barrel, down $0.29
Bitcoin Investment Trust (GBTC) settled at $17.16, down $1.45