U.S. markets showed continued strength on Friday with the major indexes capping off their best week of the year despite an underwhelming jobs report. However, the lousy news helped support the case for the Fed to ease interest rates in the near future, on worries the U.S. economy is decelerating as trade tensions with Mexico and China persist.
One bearish signal was the fact volatility closed higher and remains trapped between its 50/200-day moving averages. This was easily penciled-in ahead of the weekend with looming tariffs on Mexico in place for Monday. The good news is this issue was resolved after the market closed as President Trump announced a signed agreement with Mexico and the tariffs were indefinitely suspended.
The S&P 500 rose 1.1% after making a run to intraday to 2,884. Fresh and lower resistance at 2,875-2,900 was split but held on the close just above the 50-day moving average.
The Dow gained 1% to extend its winning streak to 5-straight sessions while testing a high of 26,072. Prior and lower resistance from mid-May at 26,000-26,250 and the 50-day moving average was cleared with the blue-chips closing just below these levels.
The Nasdaq extended its winning streak to 4-straight sessions after adding 1.7% while topping out at 7,767 shortly after open. Prior and lower resistance from mid-May at 7,750-7,800 was cleared and held with more important hurdles at 7,850 and the 50-day moving average.
The Russell 2000 snapped a 2-session losing streak after rising 0.7% with the intraday high reaching of 1,518. Near-term and lower resistance at 1,510-1,525 was cleared and held with a close above the latter getting 1,540-1,555 and the 200/50-day moving averages in play.
For the week, the Nasdaq surged 3.9% and the Russell 2000 rallied 3.3%. The Dow zoomed 4.7% and the S&P 500 soared 4.4%.
Technology and Communication Services were higher by 1.6% and 1.3% to lead sector strength. Utilities and Financials were the only sector laggards after giving back 0.7% and 0.2%, respectively.
The best performing sectors for the week included Materials (6.9%), Technology (6%), Consumer Staples (5.4%) and Industrials (5.1%). Communication Services was the only sector that closed lower (-2.1%).
Exelon (EXC) upgraded to Buy from Neutral at Goldman Sachs
Garmin (GRMN) resumed with a Neutral from Underweight at JPMorgan
W.P. Carey (WPC) upgraded to Neutral from Sell at Citi
American Tower (AMT) downgraded to Neutral from Buy at UBS
Camping World (CWH) downgraded to Market Perform from Outperform at BMO Capital
Mammoth Energy (TUSK) downgraded to Equal Weight from Overweight at Stephens
MONDAY'S EARNINGS ANNOUNCEMENTS
Before the open: Concrete Plumbing (BBCP), Lovesac (LOVE), Shiloh Industries (SHLO), Thor Industries (THO), Uxin (UXIN)
After the close: Advaxis (ADXS), Casey’s General Stores (CASY), Lakeland Industries (LAKE)
UPCOMING ECONOMIC NEWS
Monday's economic reports (EST):
Jolts - 10:00am
TD Ameritrade IMX - 12:30pm
METALS / OIL
Gold closed at $1,346.10 an ounce, up $3.40
Silver settled at $15.03 an ounce, up $0.13
Copper finished at $2.62 a pound, down $0.03
Crude Oil was at $54.04 a barrel, up $1.45
Bitcoin Investment Trust (GBTC) ended at $10.36, up $1.11
I hope this helps you prepare for the trading day. Make it a great one!
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