Blue-Chips Recover 50-Day Moving Average

The stock market was mostly higher on Thursday as better-than-expected earnings outweighed another disappointing jobs report. Alphabet (GOOG) led the ongoing strength in Tech after topping Wall Street’s estimates and announcing a 20-for-1 stock split.

Meanwhile, ADP reported private-sector U.S. employers cut 31,000 jobs last month, representing the first decline since December 2020. The small-caps slacked for the first time in four sessions but held fresh levels of support.

The S&P 500 traded to a high of 4,595 while settling at 4,589 (+0.9%). Fresh and lower resistance at 4,575-4,600 was reclaimed. A close above the latter would suggest additional upside towards 4,625-4,650 and the 50-day moving average.

The Dow ended at 35,629 (+0.6%) following the afternoon run to 35,679. New and lower resistance at 35,500-35,750 and the 50-day moving average were cleared and held. A pop above the latter would suggest additional momentum towards 36,000-36,250.

The Nasdaq tapped an intraday high of 14,504 before finishing at 14,417 (+0.5%). Prior and lower resistance from early October at 14,500-14,650 was cleared but held. A move above the latter would signal further strength towards 14,700-14,850 and the 200-day moving average.

The Russell 2000 fell to a low of 2,013 while closing at 2,029 (-1%). Prior and upper support at 2,025-2,000 was tripped but held. A drop below the latter would indicate a retest towards 1,975-1,950. Below is a chart of the IWM.

ANALYST UPGRADES/DOWNGRADES

Arrow Electronics (ARW) upgraded to outperform from market perform at Raymond James
Intuitive Surgical (ISRG) upgraded to buy from neutral at UBS

CyrusOne (CONE) downgraded to market perform from outperform at TD Securities
Exxon Mobil (XOM) upgraded to buy from hold at Argus Research

THURSDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: Advanced Drainage Systems (WMS), Biogen (BIIB), ConocoPhillips (COP), Eli Lilly & Co. (LLY), HanesBrands (HBI), Hershey (HSY), IntercontinentalExchange (ICE), Liquidity Services (LQDT), Madison Square Garden Sports (MSGS), Merck (MRK), Nokia (NOK), Penn National Gaming (PENN), Ralph Lauren (RL), Snap-On (SNA), Timken (TKR), Vista Outdoor (VSTO), WestRock (WRK), Xylem (XYL)


After the close: Amazon.com (AMZN), Boyd Gaming (BYD), Clorox (CLX), Deckers Brands (DECK), ePlus (PLUS), Ford Motor (F), GoPro (GPRO), Microchip Technology (MCHP), NortonLifeLock (NLOK), Open Text (OTEX), Pinterest (PINS), Skechers U.S.A. (SKX), Skyworks Solutions (SWKS), USA Truck (USAK), Viavi Solutions (VIAV), Werner Enterprises (WERN)

THURSDAY'S ECONOMIC NEWS
Initial Jobless Claims - 8:30am
ISM Manufacturing Index - 10:00am
Factory Orders - 10:00am

METALS/ OIL
Gold closed at $1,810.30 an ounce, up $8.80
Silver settled at $22.71 an ounce, up $0.12
Copper finished at $4.50 a pound, up $0.07
Crude Oil was at $87.72 a barrel down $0.62
Bitcoin Investment Trust (GBTC) ended at $25.55 down  $0.72

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

 Todd Mitchell

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