Small-Caps Lag After Failing Resistance

MARKET SUMMARY

U.S. markets showed strength on the open following optimism surrounding continued trade talks with China. The country’s top economic advisor, Liu He, is scheduled to meet with U.S. Treasury Secretary Mnuchin to close a deal that would ease restrictions for a major Tech company in return for China removing tariffs on U.S. soybeans, pork and ginseng. The momentum held throughout the session although there was weakness in the small-caps afterwards as the major indexes closed mixed for the session.

The Dow rose 0.3% after making a run to 24,994 to close higher for an 8th-straight session. The S&P 500 gained 0.1% to extend its winning streak to 4-straight while reaching a peak of 2,742.

The Nasdaq closed higher for the 6th-time in seven sessions after adding 0.1% and making an intraday push to 7,458. The Russell 2000 slipped 0.4% after failing its all-time high of 1,615 by just over a point shortly after the open.

TRADE OF THE DAY
WHEN MARKETS MISBEHAVE
ANALYST UPGRADES / DOWNGRADES 

CSX (CSX) upgraded to Neutral from Sell at Goldman Sachs
L Brands (LB) upgraded to Buy from Neutral at Citi
Lear (LEA) upgraded to Outperform from In Line at Evercore ISI
Dean Foods (DF) downgraded to Sell from Hold at Deutsche Bank
Hostess Brands (TWNK) downgraded to Hold from Buy at Deutsche Bank
Owens Corning (OC) downgraded to Market Perform from Outperform at Wells Fargo

EARNINGS

Tuesday’s earnings: 
Before the open: Azz (AZZ), CPI Areostructures (CVU), Eagle Materials (EXP), Home Depot (HD), iPic Entertainment (IPIC), Kamada (KMDA), National Vision Holdings (EYE), Pointer Telocation (PNTR), Sorl Auto Parts (SORL), Virtusa (VRTU)
After the close: Boot Barn Holdings (BARN), DLH Holdings (DLHC), GrowGeneration (GRWG), Limbach Holdings (LMB), NetList (NLST), PerIQ (PETQ), Sunworks (SUNW)


UPCOMING ECONOMIC NEWS

Tuesday's economic reports (EST): 

Retail Sales - 8:30am
Empire State Manufacturing Survey - 8:30am
Redbook - 8:55am
Business Inventories -10:00am
Housing Market Index - 10:00am

METALS / OIL

Gold closed at $1,318.20 an ounce, down $2.50

Silver settled at $16.65 an ounce, down $0.10

Copper finished at $3.09 a pound, down $0.02

Crude Oil is at $71.14 a barrel, up $0.63

Bitcoin Investment Trust (GBTC) ended at $14.50 up $0.40

Article of the Day

The biggest mistake that beginners make, especially when they win for a period of time is thinking that the market is going to stay in the same character... [read more]

Make it a great day!

Todd Mitchell

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