Small-Caps Tap Record High

MARKET SUMMARY

U.S. markets showed overall strength for a 4th-straight session while pushing fresh resistance and all-time highs. The bullish tone comes ahead of low-level Sino-U.S. trade talks later this week and as the current bull market rally nears the record books.

Progress on the EU and NAFTA partner negotiations was also a bullish signal. Wednesday’s FOMC Minutes from the Federal Reserve and Fed Chairman Jerome Powell’s speech on Friday remain the wild cards.

The Russell 2000 surged 1.1% after trading to a record high of 1,722. Fresh resistance is at 1,725-1,740 on continued strength.

The Nasdaq rose 0.5% following the midday run to 7,897. Key resistance at 7,900 held with a move above this level getting fresh all-time highs north of 7,933 in play.

The Dow climbed 0.3% while making an intraday push to 25,888. Lower resistance at 25,800-26,000 was cleared with a move above the latter being a more bullish development.

The S&P 500 gained 0.2% following the run to 2,873 and fresh record high. Lower resistance at 2,850-2,860 held with continued closes above the latter keeping 2,875-2,900 in focus.

Consumer Discretionary led sector strength after rising 0.8% while Industrials were up 0.7%.

Real Estate led sector laggards after giving back 0.9%. Utilities and Consumer Staples fell 0.7%.

ANALYST UPGRADES/DOWNGRADES

Symantec (SYMCWealth Strength IndexSYMC is Moderately Flat and trending Up) upgraded to Positive from Neutral at Susquehanna
Discovery (DISCAWealth Strength IndexDISCA is Flat and trending Up) upgraded to Buy from Hold at Jefferies
Bayer (BAYRY) upgraded to Buy from Hold at Berenberg
Tesla (TSLAWealth Strength IndexTSLA is Extremely Flat and trending Up) downgraded to Equal Weight from Overweight at Consumer Edge
HP Enterprise (HPE) downgraded to Market Perform from Outperform at Bernstein
Brixmor (BRX) downgraded to Neutral from Buy at Mizuho

EARNINGS

Wednesday’s earnings announcements (EST): 

Before the open: ​​Analog Devices (ADIWealth Strength IndexADI is Flat and trending Up), Frontline (FRO), Lowe’s (LOW), Momo (MOMO), Photronics (PLAB), Royal Bank of Canada (RY), Target (TGT), Uxin (UXIN)
After the close: ​​Chemical & Mining (SQM), Huazhu (HTHT), L Brands (LB), Raven Industries (RAVN), Synopsys (SNPS), Williams-Sonoma (WSM), Zayo Group Holdings (ZAYO)

UPCOMING ECONOMIC NEWS

Wednsday’s economic reports (EST): 

​MBA Mortgage Applications – 7:00am
Existing Home Sales – 10:00am
FOMC Minutes – 2:00pm

METALS / OIL

Gold closed at $1,200.00 an ounce, up $5.40

Silver settled at $14.77 an ounce, up $0.10

Copper finished at $2.70 a pound, up $0.03

Crude Oil is at $67.32 barrel, up $0.70

Bitcoin Investment Trust (GBTC) ended at $8.87 up $0.11

Make it a great day!

   Todd Mitchell

QUOTE OF THE DAY