VIX Holds Major Resistance

MARKET SUMMARY

U.S. markets were weak throughout Thursday’s session as the trade war deepened between the U.S. and China. China has accused the U.S. of trade abuses, while the U.S. continues to accuse China of stealing technology. India has now joined Europe in imposing retaliatory tariffs on U.S. goods as the trade war reach extends.

The Dow extended its losing streak to 8-straight sessions after dropping 0.8% while trading to a low of 24,406. Backup support at 24,450-24,400 is now in play on the close back below the 50-day moving average.

The S&P 500 declined 0.6% after testing a low of 2,744. Major support at 2,750 was breached and was a slightly bearish development.

The Nasdaq made a run past the 7,800 level before fading 0.9% on the late day pullback to 7,699. The 7,700 level has been holding for the past 6 sessions and 7 of the last 8 with a close below this level being a slightly bearish signal.

The Russell 2000 also saw positive territory on the open while missing a fresh all-time high north of 1,708 by a tenth-point. The back-test to 1,685 and close back below the 1,700 level was a slight concern.

ANALYST UPGRADES/DOWNGRADES

​AMC Entertainment (AMC) upgraded to Buy from Hold at Benchmark
Becton Dickinson (BDX) upgraded to Overweight from Neutral at JPMorgan
PayPal (PYPL) upgraded to Overweight from Neutral at Atlantic Equities

AMC Networks (AMCX) downgraded to Underperform from Market Perform at Bernstein
Catalyst Biosciences (CBIO) downgraded to Neutral from Buy at B. Riley FBR
Nike (NKE) downgraded to Neutral from Buy at UBS

 

EARNINGS

Friday’s earnings reports (EST): 

Before the open: Blackberry (BB), Carmax (KMX)
After the close: No major announcements

 

UPCOMING ECONOMIC NEWS

Friday’s economic reports (EST): 

Empire State Manufacturing Survey – 8:30am
Industrial Production – 9:15am
Consumer Sentiment – 10:00am
Baker-Hughes Rig Count – 1:00pm

METALS / OIL

Gold closed at $1270.50 an ounce, down $4.00

Silver settled at $16.33 an ounce, up $0.02

Copper finished at $3.02 a pound, down$0.02

Crude Oil is at $65.82 a barrel, up $0.11

Bitcoin Investment Trust (GBTC) ended at $10.70 down $0.20

Make it a great day!

Todd Mitchell

QUOTE OF THE DAY