U.S. markets showed strength on Monday’s open but reversed course shortly afterwards following the ongoing economic crisis in Turkey, which has seen its currency slip against other world markets. Despite the weakness in the Turkish lira, the U.S. banking exposure remains small although Financials were weak for a 3rd-straight session.
There was little else for Wall Street to key in on as the economic calendar was quiet and with the 2Q earnings season winding down. Volatility closed at its highest level since early July but held a key level of resistance.
The Russell 2000 gave back 0.7% after bottoming at 1,670 midday. Lower support at 1,680-1,675 held with the close below the 50-day moving average being a slightly bearish development.
The Dow declined 0.5% despite testing a morning high of 25,381 while extending its losing streak to 4-straight sessions. The close below upper support at 25,200-25,000 was also a warning signal.
The S&P 500 slipped 0.4% after failing near-term resistance at 2,850 on the morning pop to 2,843. Lower support at 2,825-2,820 was beached on the intraday low of 2,819 but held into the closing bell.
The Nasdaq was off 0.3% after trading to an intraday high of 7,888 and failing key resistance at 7,900. A close below 7,800, and a level that has been holding for 8-straight sessions, would be a bearish development.
Utilities and Healthcare rose 0.1% while Real Estate was up 0.03% and were the only sectors to show strength.
Energy was the leading sector laggard after tumbling 1.3%. Financials and Materials sank 1% to add on to Friday’s 1+% pullbacks.
Dollar Tree (DLTRWealth Strength IndexAAPL is Extremely Up and trending Up) upgraded to Overweight from Neutral at Atlantic Equities
Papa John’s (PZZA) upgraded to Buy from Neutral at Longbow
Viavi (VIAV) upgraded to Buy from Hold at Needham
Akamai (AKAMWealth Strength IndexAAPL is Extremely Up and trending Up) downgraded to Neutral from Outperform at Credit Suisse
Goodyear Tire (GT) downgraded to Equal Weight from Overweight at Morgan Stanley
Rite Aid (RAD) downgraded to Market Perform from Outperform at Cowen
Tuesday’s earnings announcements (EST):
Before the open: Advance Auto Parts (AAP), Brinker International (EAT), Canadian Solar (CSIQ), Eyenovia (EYEN), Home Depot (HD), MakeMyTrip (MMYT), National Vision Holdings (EYE), Rewalk Robotics (RWLK), Tapestry (TPR), Veru (VERU)
After the close: Agilent Technologies (A), Boxlight (BOXL), Casa Systems (CASA), Cree (CREE), iCad (ICAD), Myriad Genetics (MYGN), PetIQ (PETQ), Sorl Auto Parts (SORL), Viavi Solutions (VIAV), YogaWorks (YOGA)
UPCOMING ECONOMIC NEWS
Tuesday’s economic reports (EST):
NFIB Small Business Optimism Index – 6:00am
Import and Export Prices – 8:30am
Redbook – 8:55am
METALS / OIL
Gold closed at $1198.90 an ounce, down $20.10
Silver settled at $14.98 an ounce, down $0.32
Copper finished at $2.73 a pound, down $0.01
Crude Oil is at $67.37 barrel, down $0.36
Bitcoin Investment Trust (GBTC) ended at $9.41 down $0.19