U.S. markets showed strength on another turnaround Tuesday following hopeful signs from Mexico and China that a resolution might be on the horizon, although it is not clear it would be anytime soon. President Trump suggested that the June 10th tariffs on Mexico will be applied as threatened, though Mexico's foreign minister thinks there is about an 80% chance the levies will be avoided.
The major indexes made a run at their 200-day moving averages but it remains to be seen if a continued rally is in store or if the action was an oversold bounce.
The Nasdaq zoomed 2.7% following the late day run to 7,529. Prior and lower resistance at 7,500-7,550 and the 200-day moving average was cleared and held with a close above the latter getting 7,600-7,650 back in focus.
The Russell 2000 rallied 2.6% while closing on its session high of 1,508. Near-term and lower resistance at 1,500-1,515 was cleared but held with continued closes above 1,525-1,550 and the 200/50-day moving averages signaling a possible near-term bottom.
The S&P 500 soared 2.1% after tapping an intraday high of 2,804. Fresh and upper resistance at 2,775-2,800 and the 200-day moving average was cleared and held with additional hurdles at 2,825-2,850 and the 50-day moving average.
The Dow also surged 2.1% following the intraday run to 25,343. Current and lower resistance at 25,250-25,500 was cleared and held with a close above the latter and the 200-day moving average being a more bullish development.
Technology and Materials led sector strength after jumping 3.3% and 2.8%, respectively. Consumer Discretionary and Financials were up 2.7%
Real Estate was the only sector laggard after falling 0.6%.
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Netflix (NFLX) upgraded to Buy from Hold at Loop Capital
Mirati Therapeutics (MRTX) upgraded to Buy from Neutral at Citi
Take-Two (TTWO) upgraded to Market Perform from Underperform at BMO Capital
Box (BOX) downgraded to Hold from Buy at Canaccord
Ensign Group (ENSG) downgraded to Hold from Buy at SunTrust
U.S. Steel (X) downgraded to Sell from Neutral at Goldman Sachs
WEDNESDAY'S EARNINGS ANNOUNCEMENTS
Before the open (EST):
American Eagle Outfitters (AEO), AstroNova (ALOT), Campbell Soup (CPB), G-III Apparel (GIII), SecureWorks (SCWX), Vera Bradley (VRA)
After the close(EST):
ABM Industries (ABM), Cloudera (CLDR), Five Below (FIVE), Greif (GEF), IDT (IDT), MongoDB (MDB), REV Group (REVG), Smartsheet (SMAR), Stitch Fix (SFIX), United Natural Foods (UNFI), Volt Information Sciences (VISI)
UPCOMING ECONOMIC NEWS
Wednesday's economic reports (EST):
MBA Mortgage Applications - 7:00am
ADP Employment Report - 8:15am
PMI Services Index - 9:45am
ISM Non-Manufacturing Index - 10:00am
Beige Book - 2:00pm
METALS / OIL
Gold closed at $1,328.70 an ounce, up $0.80
Silver settled at $14.77 an ounce, up $0.13
Copper finished at $2.66 a pound, up $0.01
Crude Oil was at $52.84 a barrel, down $0.02
Bitcoin Investment Trust (GBTC) ended at $9.12 down $1.65
I hope this helps you prepare for the trading day. Make it a great one!
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