08-07-2018 Trade of the Day

Earnings Stay Strong


U.S. markets opened in positive territory and showed continued momentum throughout Tuesday’s session while pushing January resistance levels. The strength was attributed to a continued solid 2Q earnings season as 82% of the S&P 500 companies that have reported have topped estimates.

This is higher than the 72% of companies that beat estimates during the same quarter last year. The S&P ETFs for small capitalization and mid-cap stocks broke out to fresh all-time highs, with the large-cap S&P 500 now within 1% of lifetime peaks.

The Dow, which has been a laggard over the past few sessions, was up 0.5% after making a run to 25,692. The close above resistance at 25,600 was a bullish signal for continued strength.

The S&P 500 extended its winning streak to 4-straight sessions after adding 0.3% and reaching a peak of 2,863. Lower January resistance at 2,870-2,875 held with the all-time high just south of 2,873.

The Nasdaq closed higher for the 6th-straight session after gaining 0.3% and tapping 7,898 intraday. Lower resistance at 7,900-7,925 held with a move above the latter getting fresh all-time highs up to 7,950-8,000 in play.

The Russell 2000 climbed 0.2% following its morning push to 1,694. Fresh resistance is at 1,690-1,700 with a move above the latter also signaling a test towards 1,710-1,715 and new record highs.

Industrials and Energy led sector strength after rising 0.7%. Consumer Discretionary and Financials advanced 0.5%

Consumer Staples paced sector laggards after falling 0.6%. Real Estate and Utilities were off 0.2%.


Alnylam (ALNY) upgraded to Buy from Hold at Stifel
Illumina (ILMN) upgraded to Equal Weight from Underweight at Morgan Stanley
SeaWorld (SEAS) upgraded to Neutral from Underperform at Macquarie
Zillow (Z) downgraded to Neutral from Buy at BofA/Merrill
Wynn Resorts (WYNN) downgraded to Hold from Buy at Argus
Dentsply Sirona (XRAY) downgraded to Neutral from Outperform at Baird


Wednesday's earnings announcements (EST): 

Before the open: ​Cars.com (CARS), CVS Health (CVS), Extreme Networks (EXTR), Gogo (GOGO), Horizon Pharma (HZNP), Kelly Services (KELYA), Keurig Dr Pepper (KDP), Mylan (MYL), New York Times (NYT), Regenxbio (RGNX), Sina (SINA), Tecnoglass (TGLS), Vitamin Shoppe (VSI), Wyndham Destinations (WYND)
After the close: ​21st Century Fox (FOXA), ADT (ADT), Blue Bird (BLBD), Craft Brew Alliance (BREW), Darling International (DAR), Diamondback Energy (FANG), ePlus (PLUS), Flower Foods (FLO), Golden Entertainment (GDEN), Green Dot (GDOT), iPass (IPAS), Jack in the Box (JACK), Monster Beverage (MNST), Nuance Communications (NUAN), Outfront Media (OUT), PDC Energy (PDCE), Roku (ROKU), Sunoco (SUN), Tech Target (TTGT), Yelp (YELP)

Upcoming Economic News


Wednesday's economic reports (EST): 

​MBA Mortgage Applications - 7:00am


Gold closed at $1218.30 an ounce, up $.60

Silver settled at $15.37 an ounce, up $0.03

Copper finished at $2.75 a pound, up $0.05

Crude Oil is at $69.17 barrel, up $0.29

Bitcoin Investment Trust (GBTC) ended at $10.13 up $0.16

​​​Article of the Day

If you should experience that "rush" of beating the market, please proceed with caution.  [read more]

   Make it a great day!

   Todd Mitchell


Earnings Stay Strong

Click to Tweet

Insert Image