More Tariff Talk Tanks Market

U.S. markets tried to rebound on Thursday and were doing a great job of recovering much of the prior session’s losses following the disappointing policy stance from the Fed. The major indexes showed strength throughout the first half of action before breaking news President Trump would impose an additional 10% tariff on $300 billion of Chinese goods ruined the momentum.

The push past major and prior resistance levels immediately went south while sparking another selloff. Near-term support levels were breached for the 2nd-straight session with the continued rise in volatility remaining a major concern.

The Russell 2000 fell 1.5% following the opening run to 1,587 and trip past lower resistance at 1,585-1,600. The drop to 1,546 breached backup and upper support at 1,550-1,535 and the 50-day moving average but a level that held into the closing bell.

The Dow declined 1.1% despite the morning pop to 27,175 and brief trip back above the 27,000 level. Upper support at 26,750 was breached and failed to hold on the late day tumble to 26,548 afterwards with a move below 26,500 and the 50-day moving average signaling additional selling pressure.

The S&P 500 sank 0.9% after testing a first half peak of 3,013 and briefly holding the 3,000 level. Prior and lower support at 2,975-2,950 was breached but held on the plunge to 2,945 with a move below 2,925 and the 50-day moving average being an ongoing bearish development.

The Nasdaq gave back 0.8% after trading in a 231-point range while testing an intraday high of 8,311. The pullback to 8,080 breached upper support at 8,100-8,050 but a level that held along with the July low of 8,059.

Utilities led sector strength after jumping 1.1% while Real Estate and Healthcare edged up 0.2% and 0.1%, respectively.

Energy and Financials plummeted 2.3% to pace sector sector laggards while Industrials and Consumer Discretionary stumbled 2% and 1.4%, respectively.

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Crown Castle (CCI) upgraded to Overweight from Neutral at JPMorgan
Spotify (SPOT) upgraded to Hold from Sell at Loop Capital
Vanda Pharmaceuticals (VNDA) upgraded to Buy from Neutral at Citi

Air Products (APD) downgraded to Hold from Buy at HSBC
Prudential (PRU) downgraded to Neutral from Buy at B. Riley FBR
T2 Biosystems (TTOO) downgraded to Neutral from Buy at Alliance Global Partners

Before the open: Ameren (AEE), Arconic (ARNC), Cboe Global Markets (CBOE), Chevron (CVX), Cinemark (CNK), Enbridge (ENB), Exxon Mobil (XOM), Fortis (FTS), Honda Motor (HMC), ITT Industries (ITT), Johnson Outdoors (JOUT), MoneyGram International (MGI), Nobel Energy (NBL), Ofs Capital (OFS), Restaurant Brands International (QSR), Sealed Air (SEE), Sprint (S), Telus (TU), Vistra Energy (VST)

After the close:
​​Hawaiian Electric Industries (HE)

Friday’s economic reports (EST): 
Employment Report - 8:30am
International Trade - 8:30am
Consumer Sentiment - 10:00am
Factory Orders - 10:00am
Baker-Hughes Rig Count - 1:00pm

Gold closed at $1,432.40 an ounce, down $5.40
Silver settled at $16.18 an ounce, down $0.23
Copper finished at $2.66 a pound, unchanged
Crude Oil was at $54.48 a barrel, down $4.10
Bitcoin Investment Trust (GBTC) ended at $13.98, up $0.34

I hope this helps you prepare for the trading day. Make it a great one!

   Todd Mitchell

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