Blue-Chips Hold 50-Day MA

MARKET SUMMARY

U.S. markets were weak on Tuesday’s open as trade tensions with China reached a new gear. After the U.S. and China imposed tariffs on each other, the White House has reportedly identified another $200 billion in potential taxes that it is threatening to enact. China has said if they are implemented, it will respond in kind.

The indexes rebounded off their morning lows with the small-caps once again showing strength. The mixed finish came on heightened volatility but the damage was limited as the VIX held key levels of resistance.

The Dow dropped 1.2% to extended its losing streak to 6-straight sessions after testing a low of 24,567. Major support at 24,650 and the 50-day moving average held although the blue chips are now negative by 19 points for the year.

The S&P 500 fell 0.4% to extend its losing streak to 3-straight sessions after testing an intraday low of 2,743. Crucial support at 2,750 held for the 2nd-straight day.

The Nasdaq gave back 0.3% after trading in negative territory throughout the session with the low tapping 7,635. The index held the 7,700 level 5th time in 6 sessions.

The Russell 2000 gained 0.1% despite the morning back-test to 1,672 and lower weekly low. The rebound to 1,694 and fresh all-time high keeps 1,700 in play.

Utilities jumped 1% to lead sector strength while Consumer Staples advanced 0.5%

Industrials were the weakest sector after sinking 2.1% while Materials were punished for 1.8%.

WINNING TRADERS MINDSET – PART 2

ANALYST UPGRADES/DOWNGRADES

Accenture (ACN) upgraded to Positive from Neutral at Susquehanna
First Solar (FSLR) upgraded to Neutral from Underperform at Credit Suisse
Verizon (VZ) upgraded to Buy from Hold at Deutsche Bank
Dr Pepper Snapple (DPS) downgraded to Hold from Buy at Stifel
F5 Networks (FFIV) downgraded to Neutral from Buy at Citi
Mattel (MAT) downgraded to Neutral from Buy at UBS

EARNINGS

Wednesday’s earnings reports (EST): 

Before the open: Actuant (ATU), ReneSola (SOL), Winnebago Industries (WGO)
After the close: American Outdoor Brands (AOBC), Barnes & Noble Education (BNED), Micron Technology (MU), Steelcase (SCS)

UPCOMING ECONOMIC NEWS

Wednesday’s economic reports (EST): 

MBA Mortgage Applications – 7:00am
PPI-FD – 8:30am
Atlantic Fed Business Inflation Expectations – 10:00am
FOMC Minutes – 2:00pm

METALS / OIL

Gold closed at $1278.60 an ounce, down $1.50

Silver settled at $16.32 an ounce, down $0.12

Copper finished at $3.05 a pound, down$0.05

Crude Oil is at $65.09 a barrel, down $0.70

Bitcoin Investment Trust (GBTC) ended at $11.00 down $0.05

Article of the Day

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Make it a great day!

Todd Mitchell

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Blue-Chips Hold 50-Day MA



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