U.S. markets struggled throughout Wednesday’s session after the Trump administration released a new list of Chinese products that may face tariffs. The rally since the July 4th holiday hit a snag after the U.S. targeted 10% tariffs on another $200 billion in Chinese goods.
China, in turn, threatened to retaliate again with the market once again taking a defensive posture. Fresh support levels were tested, and held, with volatility getting stretch before holding key levels of resistance.
The Dow fell 0.9% to snap a 4-session win streak following the back-test to 24,663. Support at 24,700-24,600 and the 50-day moving average held into the close with a move below the latter being a slightly bearish development.
The S&P 500 sank 0.7% after trading to a low of 2,770 intraday. Upper support at 2,775-2,770 failed to hold by a point with a move below 2,765 likely signaling additional weakness.
The Nasdaq closed lower for the first time in 5 sessions after giving back 0.6% and tapping an intraday low of 7,696. Prior support from mid-June at 7,700-7,650 held with a close below this level being a warning sign for lower lows.
The Russell 2000 extended its losing streak to two-straight with a pullback of 0.7% on the back-test and close at 1,683. Near-term support is at 1,680-1,675 with a move below 1,670 being a cautious signal.
Conn's (CONN) upgraded to Buy from Hold at Stifel
Imperial Oil (IMO) upgraded to Equal Weight from Underweight at Barclays
TripAdvisor (TRIP) upgraded to Overweight from Equal Weight at Barclays
Hess (HES) downgraded to Underweight from Equal Weight at Barclays
Jazz Pharmaceuticals (JAZZ) downgraded to Equal Weight at Morgan Stanley
Westlake Chemical (WLK) downgraded to Neutral from Buy at Nomura Instinet
Thursday's earnings announcements (EST):
Before the open: Commerce Bancshares (CBSH), Delta Air Lines (DAL), Emmis Communications (EMMS), Northern Technologies (NTIC), Peak Resorts (SKIS)
After the close: Aspen Group (ASPU), Kush Bottles (KSHB)
Thursday's economic reports (EST):
Jobless Claims - 8:30am
Consumer Price Index - 8:30am
Bloomberg Consumer Comfort Index - 9:45am
Gold closed at $1244.40 an ounce, down $11.00
Silver settled at $15.82 an ounce, down $0.27
Copper finished at $2.74 a pound, down $0.10
Crude Oil is at $71.13 barrel, down $2.98
Bitcoin Investment Trust (GBTC) ended at $9.35 up $0.08
Make it a great day!
Momentum Stalls on Renewed Tariff Tantrums