U.S. markets showed weakness throughout Monday’s session as corporate earnings disappointed on lowered global outlooks. Nervousness ahead of Wednesday’s Fed minutes and Friday’s jobs report also played a role in what will be the busiest week for 4Q earnings announcements.
The technical damage was limited as near-support levels and the 50-day moving averages easily held. However, volatility jumped 8.5% after testing key resistance and is suggesting caution ahead of this week’s big events.
The Nasdaq sank 1.1% following the midday backrest to 7,034. Fresh and upper support at 7000-6,950 held with a move below the latter and the 50-day moving average being a slightly bearish signal.
The S&P 500 was lower by 0.8% following the second half pullback to 2,624. Near-term and upper support at 2,625-2,600 was tripped but held with a close below the latter and the 50-day moving average being a bearish development.
The Dow also dropped 0.8% after trading down to 24,323. Fresh and upper support at 24,300-24,100 and the 50-day moving average easily held with a move below 24,000 signaling a near-term top.
The Russell 2000 was down 0.6% after testing an intraday low of 1,464. Upper support at 1,465-1,450 was breached but held with a move below 1,440 and the 50-day moving average opening up risk towards 1,425-1,420.
Real Estate and Consumer Staples were the only sectors that showed strength after rising 1% and 0.4%.
Technology and Healthcare led sector weakness after sinking 1.3% and 1.1%, respectively. Energy and Industrials tanked 1%.
Logitech (LOGI) upgraded to Buy from Neutral at Goldman Sachs
Sonos (SONO) upgraded to Overweight from Equal Weight at Morgan Stanley
Zynga (ZNGA) upgraded to Overweight from Sector Weight at KeyBanc
Amgen (AMGN) downgraded to In Line from Outperform at Evercore ISI
Autohome (ATHM) downgraded to Underweight from Neutral at JPMorgan
SunTrust (STI) and U.S. Bancorp (USB) were downgraded to Neutral from Outperform at Baird
Tuesday Before the Open (EST):
3M (MMM), Autoliv (ALV), Biogen (BIIB), Brinker International (EAT), Corning (GLW), Dover (DOV), Extreme Networks (EXTR), Graphic Packaging (GPK), Harley-Davidson (HOG), L3 Technologies (LLL), Lockheed Martin (LMT), Nucor (NUE), Pfizer (PFE), PulteGroup (PHM), Rockwell Automation (ROK), Verizon Communications (VZ), Xerox (XRX)
Tuesday After the Close (EST): Advanced Micro Devices (AMD), Apple (AAPL), Boston Properties (BXP), eBay (EBAY), Hawaiian Holdings (HA), Illumina (ILMN), Juniper Networks (JNPR), KLA-Tencor (KLAC), MicroStrategy (MSTR), Packaging Corporation (PKG), Robert Half International (RHI), TSYS (TSS), WR Berkley (WRB)
UPCOMING ECONOMIC NEWS
Tuesday's Economic Reports (EST):
International Trade in Goods - 8:30am
Retail Inventories - 8:30am
Wholesale Inventories - 8:30am
Redbook - 8:55am
S&P Corelogic Case-Shiller - 9:00am
Consumer Confidence - 10:00am
METALS / OIL
Gold closed at $1,303.10 an ounce, up $5.00
Silver settled at $15.77 an ounce, up $0.07
Copper finished at $2.68 a pound, down $0.05
Crude Oil is at $53.55 a barrel, unchanged
Bitcoin Investment Trust (GBTC) ended at $3.93,
I hope this helps you prepare for the trading day. Make it a great one!
Enter your text here...
Bears Get Frisky, VIX Cracks 20