Bulls Bounce Back

netflix

The stock market rebounded on Wednesday despite opening weakness and a major revenue miss from Netflix (NFLX). Specifically, the company reported a profit of $3.16 versus forecasts for a print of $2.68 but revenues of $7.3 billion fell shy of forecasts for nearly $7.4 billion.

Additionally, Netflix reported first-quarter subscriber growth that sharply missed expectations. Despite the news, the majority of other major companies reporting earnings this week have topped expectations and added to the bullish sentiment.

The Russell 2000 led the way higher after trading to an intraday peak of 2,240 before closing at 2,239 (+2.4%). Near-term and lower resistance at 2,225-2,250 was cleared and held. A close above the latter would indicate ongoing strength towards 2,275-2,300. Below is a chart of the IWM.

The Nasdaq tapped a second half high of 13,951 before ending at 13,950 (+1.2%). Current and lower resistance at 13,850-14,000 was recovered. A move above the latter would indicate additional strength towards 14,100-14,250 with the mid-February all-time high at 14,175.

The S&P 500 tested an afternoon high of 4,175 before settling at 4,173 (+0.9%). Prior and lower resistance at 4,175-4,200 was breached but held. A pop the latter and last Friday’s all-time peak at 4,191 would suggest ongoing strength towards 4,225-4,250.

The Dow tagged to a second half high of 34,160 before finishing at 34,137 (+0.9%). Near-term and lower resistance at 34,000-34,250 was recovered. A close above the latter and the recent record top at 34,256 would signal a possible breakout towards 34,500-34,750.

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ANALYST UPGRADES/DOWNGRADES

Citrix (CTXS) upgraded to Buy from Hold at Jefferies
Netflix (NFLX) upgraded to Buy from Hold at Stifel
PepsiCo (PEP) upgraded to Buy from Neutral at UBS

Procter & Gamble (PG) downgraded to Neutral from Buy at Citi
Rocket Companies (RKT) downgraded to Neutral from Buy at BofA
Zebra (ZBRA)downgraded to Underweight from Equal Weight at Morgan Stanley

THURSDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: American Airlines Group (AAL), AT&T (T), BankUnited (BKU), Biogen (BIIB), Blackstone (BX), Chart Industries (GTLS), D.R. Horton (DHI). East West Bancorp (EWBC), Freeport-McMoRan Copper & Gold (FCX), Genuine Parts Company (GPC), HCA Healthcare (HCA), LSI Industries (LYTS), MarineMax (HZO), Nucor (NUE), Old Dominion Freight Line (ODFL), Pentair (PNR), Quest Diagnostics (DGX), Reliance Steel & Aluminum (RS), Snap-On (SNA), Southwest Airlines (LUV), Tractor Supply (TSCO), Union Pacific (UNP), Valero Energy (VLO), Watsco (WSO)

After the close: Ameris Bancorp (ABCB), Boston Beer Company (SAM), Carlisle Companies (CSL), DMC Global (BOOM), Employers Holdings (EIG), First Financial (FFBC), Glacier Bancorp (GBCI), Hilltop Holdings (HTH), Intel (INTC), Knowles (KN), Mattel (MAT), National Bank Holdings (NBHC), Peoples United Financial (PBCT), Reliant Bancorp (RBNC), Seagate Technology (STX), Skechers U.S.A. (SKX), Snap (SNAP), U.S. Xpress Enterprises (USX), VeriSign (VRSN), WSFS Financial (WSFS), Xcel Brands, (XELB)

THURSDAY’S ECONOMIC NEWS
​Jobless Claims - 8:30am
Existing Home Sales - 10:00am
Kansas City Fed Manufacturing Index - 11:00am

METALS/ OIL
Gold closed at $1,793.10 an ounce,   up $14.70
Silver settled at $26.57 an ounce, up $0.73
Copper finished at $4.28 a pound, up $0.07
Crude Oil was at $61.11 a barrel, down $1.50
Bitcoin Investment Trust (GBTC) ended at $45.35 down $1.66

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

 Todd Mitchell

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