Tech Triggers Fresh All-Time Highs

U.S. markets opened sharply higher with momentum carrying over into the new trading week. There was some divergence shortly afterwards, as the major indexes traded in a very narrow range, with the small-caps dipping into negative territory. Global trade tensions were again in focus with volatility easing in the second half of action and closing all-time highs in play.

The Nasdaq rallied 0.7% after trading to an intraday high of 7,607 while clearing and holding the 7,600 level for the first time. The all-time intraday high is at 7,637 from mid-March.

The Dow was up 0.7% after reaching a peak of 24,859 to clear lower resistance at 24,800-25,000.

The S&P 500 added 0.5% after trading up to 2,749 ahead of the closing bell. We mentioned a close above the 2,750 level would be a continued bullish signal.

The Russell 2000 climbed 0.3% despite early morning weakness while tapping an all-time an intraday high of 1,655 ahead of the closing bell. We mentioned there is the possibility of 1,675-1,680 tripping on continued momentum.

AB InBev (BUD) upgraded to Buy from Hold at HSBC
CSS Industries (CSS) upgraded to Buy from Neutral at DA Davidson
Dollar General (DG) upgraded to Buy from Accumulate at Gordon Haskett
Jounce Therapeutics (JNCE) downgraded to Neutral from Overweight at JPMorgan
MetLife (MET) downgraded to Neutral from Buy at Goldman Sachs
SM Energy (SM) downgraded to Neutral from Outperform at Credit Suisse

Tuesday’s earnings reports (EST):

Before the open: AstroNova (ALOT), Duluth Holdings (DLTH), Francesca’s Holdings (FRAN), Genesco (GCO), HD Supply Holdings (HDS), Navistar International (NAV)
After the close: Ambarella (AMBR), Analogic (ALOG), Guidewire Software (GWRE), IDT (IDT), Layne Christensen (LAYN), NCI Building Systems (NCS), Ollie’s Bargain Outlet (OLLI), YY (YY)

Tuesday’s economic reports (EST):
Redbook – 8:55am
PMI Services Index – 9:45am
ISM Non-Manufacturing Index – 10:00am
Jolts – 10:00am

Gold closed at $1,297.30 an ounce, down $2.00
Silver settled at $16.43 an ounce, down $0.01
Copper finished at $3.13 a pound, up $0.04
Crude Oil is at $64.88 a barrel, down $0.93
Bitcoin Investment Trust (GBTC) ended at $11.98 down $0.12

Make it a great day!

Todd Mitchell