VIX Holds Key Resistance Level

MARKET SUMMARY
U.S. markets showed continued weakness after trading on both sides of the ledger before finishing mostly lower to start the week. Some of the morning strength came after U.S. Treasury Secretary Mnuchin said he’s cautiously optimistic of reaching an agreement on trade with China. However, higher interest rates weighed on trading as the 10-year T-note yield climbed to a 4-1/4 year high of 2.99%.

Although this shouldn’t be a big issue longer-term for the market, waiting for 3% to trigger has caused some recent nervousness.

The Nasdaq was down 0.3% after trading to an intraday low of 7,094 to extend its losing streak to 3-straight while below its 100-day moving average.

The Dow extended its losing streak to fourth-straight after declining 0.1% while trading to an intraday low of 24,328. The 24,000 level has been holding for 10-straight sessions with a third of the blue-chips reporting numbers this week.

The Russell 2000 slipped 0.1% following the backtest to 1,556 and a lower low than Friday. However, the 50-day moving averages is on track to clear the 100-day moving average on renewed strength and would be a slightly bullish signal.

The S&P 500 was up less than a point, or 0.01% despite testing a late day low of to 2,657 to snap a two-session slide.

TRADE OF THE DAY

ANALYST UPGRADES / DOWNGRADES
Exxon Mobil (XOM) upgraded to Market Perform from Underperform at Raymond James
Michael Kors (KORS) upgraded to Buy from Hold at Deutsche Bank
Verizon (VZ) upgraded to Overweight from Equal Weight at Barclays

HubSpot (HUBS) downgraded to Sector Perform from Outperform at RBC Capital
Lululemon (lulu) downgraded to Hold from Buy at Needham
Volaris (VLRS) downgraded to Equal Weight from Overweight at Barclays

EARNINGS
Monday’s earnings:
Before the open: 3M (MMM), Allegheny Technologies (ATI), Biogen (BIIB), Caterpillar (CAT), Coca-Cola (KO), Eli Lilly (LLY), Freeport-McMoRan (FCX), Harley-Davidson (HOG), JetBlue Airways (JBLU), Lockheed Martin (LMT), PulteGroup (PHM), Ryder System (R), Sherwin Williams (SHW), Travelers (TRV), Union Bankshares (UBSH), Verizon Communications (VZ), Watsco (WSO)

After the close: Amgen (AMGN), Boston Properties (BXP), Chubb (CB), Cree (CREE), Hawaiian Holdings (HA), iRobot (IRBT), Markel (MKL), Robert Half International (RHI), Six Flags (SIX), Texas Instruments (TXN), Wynn Resorts (WYNN)

UPCOMING ECONOMIC NEWS
Monday’s economic reports (EST):
Redbook – 8:55am
S&P Corelogic Case-Shiller – 9:00am
FHFA House Price Index – 9:00am
Consumer Confidence – 10:00am
New Home Sales – 10:00am
Richmond Fed Manufacturing Index – 10:00am
State Street Investor Confidence – 10:00am

METALS / OIL
Gold closed at $1324.00 an ounce, down $14.30 (closed below 50-day MA)
Silver closed at $16.59 an ounce, down $0.58 (closed below 200-day MA)
Copper finished at $3.11 a pound, down $0.02 (holding 50-day MA)
Crude Oil closed at $68.93 a barrel, up $0.53
Bitcoin Investment Trust (GBTC) settled at $15.25 up $0.40

Make it a great day!

Todd Mitchell

QUOTE OF THE DAY