Bears Return as Bond Yields Spike to One-Year Highs

The stock market suffered its biggest losses of the month on Thursday as another spike in bond yields prompted traders to dump riskier assets, especially overbought Tech stocks. Specifically, the 10-year Treasury yield surged to a peak north of 1.6%, and its highest level since last February.
The Russell 2000 finished at 2,200 (-3.7%) after trading to an afternoon low of 2,196. Current and upper support at 2,200-2,175 was breached but held. A close below the latter would signal a continued backtest towards 2,150-2,125.
The Nasdaq ended at 13,119 (-3.5%) following the late day tumble to 13,066. Near-term and upper support at 13,100-13,000 was tripped but held on the close back below the 50-day moving average. A drop below the latter would indicate further weakness towards 12,900-12,800.
The S&P 500 closed at 3,829 (-2.5%) following the fade to 3,814 ahead of the final bell. Upper support at 3,825-3,800 was breached but held. A move below the latter and the 50-day moving average would indicate additional weakness towards 3,775-3,750.
The Dow settled at 31,402 (-1.8%) after bottoming 31,293. Current and upper support at 31,500-31,250 failed to hold. A close below the latter would signal a further pullback towards 31,000-30,750 and the 50-day moving average.

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Lowe's (LOW) upgraded to Buy from Accumulate at Gordon Haskett
Mattel (MAT) upgraded to Buy from Neutral at Monness Crespi
Nike (NKE) upgraded to Buy from Hold at HSBC

Dollar Tree (DLTR) downgraded to Underperform from Buy at BofA
Phillips 66 Partners (PSXP) downgraded to Neutral from Buy at Mizuho
Verizon (VZ) and AT&T (T) downgraded to Perform from Outperform at Oppenheimer

Before the open: AMC Networks (AMCX), Builders FirstSource (BLDR), Cinemark (CNK), DraftKings (DKNG), E.W. Scripps Company (SSP), EOG Resources (EOG), Fluor (FLR), Foot Locker (FL), Icahn Enterprises (IEP), Liberty SiriusXM Group (LSXMA), ModivCare (MODV), Northwest Natural Gas (NWN), Public Service Enterprise Group (PEG), Ryman Hospitality Properties (RHP), Strayer Education U.S. Silica Holdings (SLCA), Vistra Energy (VST)
After the close:
Coca-Cola Consolidated (COKE), Recro Pharma (REPH), Service Properties Trust (SVC)

PCE Price Index - 8:30am
Chicago PMI - 9:45am
Consumer Sentiment - 10:00am
Baker-Hughes Rig Count - 1:00pm

Gold closed at $1,775.40 an ounce,  down $22.50
Silver settled at $27.68 an ounce, down $0.18
Copper finished at $4.26 a pound, down $0.04
Crude Oil was at $63.47 a barrel, up $0.04
Bitcoin Investment Trust (GBTC) ended at $45.64 down $2.76

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

 Todd Mitchell

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