07-10-2018 Trade of the Day

Small-Caps Tap Fresh All-Time High

MARKET SUMMARY

​U.S. markets showed continued momentum following Tuesday’s jobs data, as the news reflected a stronger economy with more job openings and more potential workers coming off of the sidelines.

The small-caps showed weakness an hour after the open and suggested early that the opening gains might be limited with near-term resistance levels holding. Volatility made a lower low and remains in a relaxed atmosphere.

The Dow extended its win streak to 4-straight sessions after rising 0.6% and testing an intraday peak of 24,945. Resistance at 25,000 held and a level last seen in mid-June.

The S&P 500 was higher by 0.4% following its intraday push to 2,795. Resistance at 2,800 held and a level that hasn’t been cleared since March 13th.

The Nasdaq advanced 3 points, or 0.04%, after trading to a first half peak of 7,777. Resistance at 7,800 held with the all-time record high north of 7,806.

The Russell 2000 was the weakest link after falling 0.5% to snap a five-session win streak. The small-caps closed back below 1,700 after making a fresh lifetime high north of 1,708 by a just over a half-point.


ANALYST UPGRADES/DOWNGRADES

CarMax (KMX) upgraded to Overweight from Underweight at Morgan Stanley
KB Home (KBH) upgraded to Positive from Neutral at Susquehanna
Quest Diagnostics (DGX) upgraded to Outperform from In Line at Evercore ISI
Chipotle (CMG) downgraded to Underperform from Neutral at Mizuho
eBay (EBAY) downgraded to Hold from Buy at SunTrust
Square (SQ) assumed and downgraded to a Hold from Buy at Jefferies


EARNINGS

Wednesday's earnings announcements (EST): 

Before the open: ​AngioDynamics (ANGO), Fastenal (FAST), MSC Industrial (MSM)
After the close: ​Bank of Ozarks (OZRK)


UPCOMING ECONOMIC NEWS

Wednesday's economic reports (EST): 

MBA Mortgage Applications - 7:00am
PPI-FD - 8:30am
Atlantic Fed Business Inflation Expectations - 10:00am
Wholesale Trade - 10:00am


METALS / OIL

Gold closed at $1255.40 an ounce, down $4.20

Silver settled at $16.09 an ounce, down $0.05

Copper finished at $2.84 a pound, down $0.01

Crude Oil is at $74.05 barrel, up $0.20

Bitcoin Investment Trust (GBTC) ended at $9.27 down $1.03

Article of the Day

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   Todd Mitchell

QUOTE OF THE DAY

Small-Caps Tap Fresh All-Time High

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About the Author Todd Mitchell

Todd Mitchell is the CEO & Founder of Trading Concepts, Inc. He's been trading since 1994 and has mentored over 12,000 traders from Wall Street to Main Street. He's an expert at developing strategies for creating more consistent daily, weekly and monthly income.

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