Blue-Chips Stay Strong, Tech Tumbles

The stock market was choppy on Monday following a lower open as worries over rising rates and expectations of higher inflation weighed on sentiment. Specifically, the yield on the benchmark 10-year Treasury note briefly trading above 1.39% to reach a fresh one-year high.
 
Tech underperformed while the blue-chips outperformed with volatility rising for the fourth time in five sessions.
 
The Dow settled at 31,521 (0.1%) after trading to a record peak of 31,653. Lower resistance at 31,500-31,750 was cleared and held. A close above the latter would indicate additional momentum towards 32,000-32,250.
 
The S&P 500 closed at 3,876 (-0.8%) following the morning fade to 3,874. Near-term and upper support at 3,875-3,850 was breached but held. A drop below the latter would suggest additional weakness towards 3,825-3,800.
 
The Russell 2000 finished at 2,251 (-0.7%) after trading to an opening low of 2,247. Current and upper support at 2,250-2,225 was tripped but held. A close below the latter would signal a continued backtest towards 2,200-2,175.
 
The Nasdaq ended at 13,533 (-2.5%) following the late day tumble to 13,530. Fresh and upper support at 13,600-13,500 failed to hold. A close below the latter would indicate further weakness towards 13,300-13,200 and the 50-day moving average.

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ANALYST UPGRADES/DOWNGRADES

Foot Locker (FL) upgraded to Outperform from In Line at Evercore ISI
Snap (SNAP) upgraded to Overweight from Equal Weight at Morgan Stanley
Southern Company (SO) upgraded to Outperform from Neutral at Credit Suisse

Frontline (FRO) downgraded to Hold from Buy at Jefferies
One Stop Systems (OSS) downgraded to Market Perform from Outperform at Noble Capital
U.S. Cellular (USM) downgraded to Neutral from Overweight at JPMorgan

TUESDAY’S EARNINGS ANNOUNCEMENTS 
Before the open:  Aaron's (AAN), Boise Cascade (BCC), Brink's (BCO), Cracker Barrel Old Country Store (CBRL), Crocs (CROX), EchoStar Holding (SATS), Frank's International (FI), Home Depot (HD), LGI Homes (LGIH), Macy's (M), Medtronic (MDT), Realogy Holdings (RLGY), Standard Motor Products (SMP), TopBuild (BLD), Westlake Chemical (WLK)

After the close: Alleghany (Y), B2Gold (BTG), Cardtronics (CATM), Delek Logistics Partners (DKL), Esperion Therapeutics (ESPR), Flowserve (FLS), Halozyme Therapeutics (HALO), Intuit (INTU), Jazz Pharmaceuticals (JAZZ), Masimo (MASI), McAfee (MCFE), Nabors Industries (NBR), OneSpan (OSPN), ProPetro Holding (PUMP), Range Resources (RRC), Sierra Wireless, (SWIR), Square (SQ), Toll Brothers (TOL), Upwork (UPWK), Verisk Analytics (VRSK), Xencor (XNCR)

TUESAY’S ECONOMIC NEWS
Redbook - 8:55am
S&P Corelogic Case-Shiller - 9:00am
Richmond Fed Manufacturing Index - 10:00am

METALS/ OIL
Gold closed at $1,808.40 an ounce,  up $31.00
Silver settled at $28.08 an ounce, up $0.83
Copper finished at $4.14 a pound, up $0.07
Crude Oil was at $61.69 a barrel, up $2.68
Bitcoin Investment Trust (GBTC) ended at $53.50 down $3.20

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

 Todd Mitchell

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