Tech Taps Fresh All-Time High
U.S. markets opened lower for a second-straight session and ahead of Fed Chair Jerome Powell’s early morning testimony, which was fairly optimistic on the economic and policy fronts. The rebound afterwards lasted into the second half of action with the major indexes closing in positive territory.
Earnings are back in focus following mixed 2Q results from various sectors and will pick up steam throughout the week. Volatility plunged 6% and is again pushing multi-month lows with near-term resistance and all-time highs for the market still in play.
The Dow was up 0.2% after closing in positive territory for the 4th-straight session while reaching a high of 25,155. Mid-June resistance at 25,250-25,300 remains in play following the 3rd-straight close above the 25,000 level.
The S&P 500 soared 0.4% following the late day run to 2,814. January resistance at 2,825 is back in play on continued closes above 2,800 and a level that has held in 2 of the past 3 sessions.
The Nasdaq jumped 0.6% after testing an intraday all-time high of 7,867. The 118-point rebound off the low was a very bullish signal with blue-sky territory towards 7,950-8,000 on continued momentum.
The Russell 2000 suffered the least amount of damage on the open while rebounding 0.5% afterwards and trading to a high of 1,690. Fresh resistance at 1,700 held with continued closes above this level keeping lifetime highs north of 1,708 on the radar.
Materials and Consumer Staples paced sector strength after rising 1.3% and 0.9%. Technology gained 0.8%.
Real Estate and Energy led sector laggards after falling 0.7% and 0.4%, respectively. Utilities were off 0.1%.
Bloomin’ Brands (BLMN) upgraded to Outperform from Market Perform at Raymond James
Netflix (NFLX) upgraded to Buy from Hold at Stifel and to Outperform from Market Perform at BMO Capital
Wolverine World Wide (WWW) upgraded to Strong Buy from Buy at CL King
CubeSmart (CUBE) downgraded to Hold from Buy at Jefferies
Hormel Foods (HRL) downgraded to Equal Weight on valuation at Stephens
Intel (INTC) downgraded to In Line from Outperform at Evercore ISI
Wednesday’s earnings announcements (EST):
Before the open: Comerica (CMA), First Horizon National (FHN), Goldman Sachs (GS), Johnson & Johnson (JNJ), Mercantile Bank (MBWM), Nationstar Mortgage (NSM), Omnicom (OMC), Progressive (PGR), Prologis (PLD), UnitedHealth Group (UNH)
After the close: Alcoa (AA), American Express (AXP), Berkshire Hills Bancorp (BHLB), Cohen & Steers (CNS), Crown Holdings (CCK), eBay (EBAY), Noodles & Company (NDLS), Plexus (PLXS), RLI (RLI), Triumph Bancorp (TBK), United Rentals (URI)
UPCOMING ECONOMIC NEWS
Wednesday’s economic reports (EST):
MBA Mortgage Applications – 7:00am
Housing Starts – 8:30am
Beige Book – 2:00pm
METALS / OIL
Gold closed at $1227.30 an ounce, down $12.40
Silver settled at $15.62 an ounce, down $0.20
Copper finished at $2.75 a pound, down $0.01
Crude Oil is at $68.27 barrel, unchanged
Bitcoin Investment Trust (GBTC) ended at $11.49 up $1.19
Make it a great day!
QUOTE OF THE DAY
Tech Taps Fresh All-Time High