U.S. markets showed continued momentum over U.S. and China trade talks and increasing optimism that the government will not be partially shutdown. However, government funding is not a done deal, with President Trump sending mixed signals on a bipartisan border security deal reached by lawmakers.
Word that President Trump may meet with President Xi in mid-March, and that he may allow the March 1st deadline to slide if there is progress in this week's talks, also helped sentiment. Volatility was slightly elevated despite the overall market gains but held key levels of resistance.
The Dow added 0.5% after trading to an intraday high of 25,625. Fresh and lower resistance at 25,600-25,800 was cleared but held with a move above the latter getting early November peaks at 26,000-26,200 in play.
The S&P 500 rose 0.3% following the opening run to 2,761 shortly after the open. Major resistance at 2,750 was cleared and held with the index now joining the Dow on the close above the 200-day moving average.
The Russell 2000 was also up 0.3% testing a high of 1,545 ahead of the closing bell. Fresh resistance at 1,540-1,550 was split on the close above the former with the index roughly 1% away from getting out of correction territory.
The Nasdaq advanced 0.1% after testing a morning high of 7,461. Major resistance at 7,450 was breached but held into the close with the 200-day moving average holding by a half-point.
Energy easily led sector strength after jumping 1.3%. Consumer Discretionary and Real Estate rose 0.7%.
Utilities were the only sector laggard after sliding 0.3%.
DocuSign (DOCU) upgraded to Buy from Hold at Deutsche Bank
Shopify (SHOP) upgraded to Outperform from Sector Perform at RBC Capital
Myovant Sciences (MYOV) upgraded to Overweight from Equal Weight at Barclays
Deere (DE) downgraded to Neutral from Buy at BofA/Merrill
Clearway Energy (CWEN) downgraded to Sell from Neutral at Guggenheim
Aquantia (AQ) downgraded to Equal Weight from Overweight at Morgan Stanley
Thursday Before the Open (EST):
Avon Products (AVP), Bloomin’ Brands (BLMN), Canada Goose Holdings (GOOS), Coca-Cola (KO), Duke Energy (DUK), GasLog (GLOG), Iron Mountain (IRM), Manchester United (MANU), Paramount Group (PGRE), Pool (POOL), Ryder System (R), Six Flags (SIX), Telus (TU), TransUnion (TRU), USG (USG), Waste Management (WM), Yeti Holdings (YETI), Zebra Technologies (ZBRA)
Thursday After the Close (EST):
Applied Materials (AMAT), CBS (CBS), Ellie Mae (ELLI), Globant (GLOB), Invitation Homes (INVH), LogMeIn (LOGM), Nvidia (NVDA), Redfin (RDFN), Trex (TREX), TrueCar (TRUE), Washington Real Estate (WRE), XPO Logistics (XPO)
UPCOMING ECONOMIC NEWS
Thursday's Economic Reports (EST):
Jobless Claims - 8:30am
Retail Sales - 8:30am
PPI - 8:30am
Business Inventories -10:00am
METALS / OIL
Gold closed at $1,315.10 an ounce, up $1.10
Silver settled at $15.65 an ounce, down $0.05
Copper finished at $2.77 a pound, unchanged
Crude Oil is at $53.95 a barrel, up $0.56
Bitcoin Investment Trust (GBTC) ended at $4.16, down $0.23
I hope this helps you prepare for the trading day. Make it a great one!
S&P 500 Holds 200-Day Moving Average