U.S. markets traded in tight ranges throughout Wednesday’s action following negative trade news concerning China and disappointing economic data. The signing of the phase one trade deal between the U.S. and China could be pushed out to December as the sides continue to negotiate terms and a signing venue.
The major indexes recovered much of the opening losses but still settled mostly lower for the session. The consolidation was healthy as volatility stayed calm and continues to hold a key level of resistance.
The Russell 2000 fell 0.6% following the intraday back-test to 1,587. Current and upper support at 1,585-1,570 was challenged but held. A close below the latter would be a slightly bearish signal with risk towards the 1,550 level.
The Nasdaq had its 3-session winning streak snapped after falling 0.3% on the intraday pullback to 8,379. Upper support at 8,400-8,350 was breached but held with a close below the latter getting 8,300-8,250 back in play.
The Dow declined 0.1% after trading to an intraday low of 27,407. Near-term and upper support at 27,400-27,200 was challenged but held with a close below the latter being a slightly bearish signal for a retest towards 27,000-26,800 and the 50-day moving average.
The S&P 500 was higher by 0.1% despite the intraday back-test to 3,065. Current and upper support at 3,075-3,050 was recovered from the previous session on the afternoon rebound to 3,078.
Financials were the strongest sector strength after rising 0.5% while Consumer Staples, Real Estate and Utilities were up 0.4%. Energy was the weakest sector after tanking 2% while Communication Services were down 0.4%.
Artisan Partners (APAM) upgraded to Buy from Neutral at Citi
Blueprint Medicines (BPMC) upgraded to Strong Buy from Outperform at Raymond James
Lowe's (LOW) upgraded to Outperform from Neutral at Credit Suisse
Altice USA (ATUS) downgraded to Sector Weight from Overweight at KeyBanc
Groupon (GRPN) downgraded to Underweight from Neutral at JPMorgan
Prudential (PRU) downgraded to Market Perform from Outperform at Keefe Bruyette
THURSDAY'S EARNINGS ANNOUNCEMENTS
Before the open: AMC Entertainment (AMC), Cardinal Health (CAH), Discovery Communication (DISCA), EVO Payments (EVOP), General Finance (GFN), Hain Celestial Group (HAIN), Interxion Holding (INXN), Johnson Controls (JCI), Keurig Dr Pepper (KDP), Lifetime Brands (LCUT), Malibu Boats (MBUU), Nielsen Holdings (NLSN), Party City (PRTY), Ralph Lauren (RL), SeaWorld Entertainment (SEAS), Strayer Education (STRA), Teva Pharmaceutical (TEVA), Vista Outdoor (VSTO), Wolverine World Wide (WWW), Zoetis (ZTS)
After the close: American Homes 4 Rent (AMH), Camping World Holding (CWH), Dish Network (DISH), Dropbox (DBX), Energous (WATT), Farmer Brothers (FARM), Green Dot (GDOT), Hanger (HNGR), J & J Snack Foods (JJSF), Kronos Worldwide (KRO), Ladder Capital (LADR), Monster Beverage (MNST), Noodles & Company (NDLS), PetIQ (PETQ), Planet Fitness (PLNT), QuinStreet (QNST), Ritchie Bros. Auctioneers (RBA), Scientific Games (SGMS), Take-Two Interactive Software (TTWO), TiVo (TIVO), Universal Electronics (UEIC), Walt Disney (DIS), Yelp (YELP), Zillo
THURSDAY'S ECONOMIC NEWS
Jobless Claims - 8:30am
Consumer Credit - 3:00pm
METALS / OIL
Gold closed at $1,493.10 an ounce, up $9.40
Silver settled at $17.60 an ounce,