U.S. markets opened in the red over continued trade concerns between its trading partners in the European Union, China and North America. News that the EU has threatened $300 billion in fresh tariffs on U.S. products, along with Canadian retaliatory tariffs that took effect Sunday, propelled the major indexes towards another backtest towards major support levels.
Despite the tough trade talks, the market rebounded in the second half and showed strength into the closing bell. Volatility spiked on the open but settled down after holding a key level of resistance.
The Dow added 0.2% despite testing an intraday low of 24,077 while closing below its 200-day moving average for the 5th-straight session. A close below the 24,000 level could lead to a continued selloff towards the 23,500 area and the early May low.
The S&P 500 rose 0.3% following the morning back-test to 2,698 with early May support at 2,700 getting stretched but holding. The index closed a point off its late session high of 2,727 but needs to clear 2,750 to regain momentum.
The Nasdaq spent the first half of action underwater on the pullback to 7,443 with the 50-day moving average holding. The rebound to 7,568 and 0.8% gain was a slightly bullish signal.
The Russell 2000 added 0.7% after trading in a 24-point range and closing at the session high of 1,655. The morning low tapped 1,630 with support at 1,625-1,620 and the 50-day moving average easily holding.
Technology and Utilities showed the most sector strength after rising 0.9% and 0.7%, respectively. Communication Services added 0.6% and Financials climbed 0.5%
Energy sank 1.5% and was the weakest sector. Real Estate fell 0.6% while Consumer Staples and Materials gave back 0.5% to round out the losers.
Capital One (COF) upgraded to Outperform from Neutral at Credit Suisse
RPM (RPM) upgraded to Neutral from Underweight at JPMorgan
ZTE (ZTCOY) upgraded to Buy from Underperform at Jefferies
Canon (CAJ) downgraded to Sell from Neutral at Goldman Sachs
Integra LifeSciences (IART) downgraded to Neutral from Buy at Citi
Las Vegas Sands (LVS) downgraded to Neutral from Buy at BofA/Merrill
Tuesday’s earnings reports (EST):
Before the open: Acuity Brands (AYI), Azz (AZZ)
After the close: none
UPCOMING ECONOMIC NEWS
Tuesday’s economic reports (EST):
Redbook – 8:55am
Factory Orders – 10:00am
METALS / OIL
Gold closed at $1240.60 an ounce, down $12.80
Silver settled at $15.84 an ounce, down $0.36
Copper finished at $2.94 a pound, down $0.03
Crude Oil is at $74.04 barrel, down $0.21
Bitcoin Investment Trust (GBTC) ended at $10.20 up $1.67
Make it a great day!