The market traded lower throughout Friday’s session as ongoing U.S. / China tensions moved back into the spotlight with the ordered closure of the U.S. consulate in Chengdu, China. A possible delay in the 4th fiscal stimulus bill also weighed on sentiment as politicians try to get a deal done before August recess.
The losses were the first for the major indexes in 4 weeks as July has been a stellar month for the bulls. Next week is the height of 2Q earnings season along with another update from the Fed and the FOMC minutes midweek.
The Russell 2000 tapped a midday low of 1,466 while closing at 1,467 (-1.2%). Key support at 1,475 was failed to hold with continued closes below this level indicating a further pullback towards 1,450 and the 200-day moving average.
The Nasdaq traded to an opening low of 10,217 before finishing at 10,363 (-0.9%). Fresh support at 10,250 was breached but held with a move below this level suggesting additional risk towards the 10,000 level.
The Dow bottomed at 26,402 late in the afternoon and settled at 26,469 (-0.7%). Key support at 26,500 failed to hold with continued closes below this level leading keeping a further backtest towards 26,250 and the 200-day moving average in play.
The S&P 500 kissed an intraday low of 3,200 while ending at 3,215 (-0.6%). Crucial support at 3,200 held by a firth-point with a drop under this level signaling additional downside trouble towards the 3,175 area.
AutoNation (AN) upgraded to Overweight from Neutral at JPMorgan
JPMorgan (JPM) upgraded to Buy from Neutral at Goldman Sachs
Tesla (TSLA) upgraded to Buy from Hold at Argus
CoreLogic (CLGX) was downgraded to Neutral from Buy at Compass Point
Intel (INTC) was downgraded to Underperform from Market Perform at Bernstein
Xerox (XRX) downgraded to Underweight from Neutral at JPMorgan
MONDAY'S EARNINGS ANNOUNCEMENTS
Before the open: Avery Dennison (AVY), Bank of Hawaii (BOH), Diana Shipping (DSX), Hasbro (HAS), Lincoln Electric Holdings (LECO), Pacific Premier Bancorp (PPBI), RPM International (RPM), Silvergate Capital (SI)
After the close: Amkor Technology (AMKR), Brown & Brown (BRO), Comfort Systems USA (FIX), Donegal Group (DGICA), F5 Networks (FFIV), Hexcel (HXL), Independent Bank Group (IBTX), J & J Snack Foods (JJSF), NXP Semiconductors (NXPI), OneMain Holdings (OMF), QCR Holdings (QCRH), RBB Bancorp (RBB), Simpson Manufacturing (SSD), TrueBlue (TBI), USA Truck (USAK)
MONDAY'S ECONOMIC NEWS
Durable Goods Orders - 8:30am
Dallas Fed Manufacturing Business Index - 10:30am
Gold closed at $1,897.50 an ounce,