Bulls On 4-Month Winning Streak

The market bounced off its opening lows on Friday to close mostly higher, having declined from the open amid worries over the coronavirus and concerns over the economic recovery. A flurry of earnings news, good and not so good, also weighed on sentiment along with the uncertainty over the fate of the next round of fiscal stimulus.

The rebound in the final hour of action wasn’t enough to pull the small-caps into positive territory but the overall gains wrapped up a sweet week and month for the bulls.

The Nasdaq traded to a late day high of 10,747 while closing at 10,745 (+1.5%). Current resistance at 10,750 was challenged but held with a close above this level signaling additional momentum towards 10,800 and new all-time highs.

The S&P 500 tagged a late day high of 3,272 while ending at 3,271 (+0.8%). Prior resistance at 3,275 was challenged but held with continued closes above this level signaling additional strength towards the 3,300 level.

The Dow settled at 26,428 (+0.4%) with the 2nd-half high tapping 26,440. Key resistance at 26,500 was nearly cleared but held with a close above this level indicating additional upside towards 27,000.

The Russell 2000 tested an intraday low of 1,457 while finishing at 1,480 (-0.9%). Crucial resistance at 1,475 was breached but held with a close below this level keeping 1,450 and the 200-day moving average in play. Below is a chart of the IWM.

For the week, the Nasdaq rallied 3.7%; the S&P 500 gained 1.7%; the Russell 2000 added 1%; and the Dow lost 0.2%. 

For July, the Nasdaq zoomed 6.8%: the S&P 500 surged 5.5%; the Russell 2000 was rose 2.7%; and the Dow rose 2.3%.

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Dunkin' Brands (DNKN) upgraded to Overweight from Neutral at JPMorgan
Electronic Arts (EA) upgraded to Overweight from Sector Weight at KeyBanc
Qualcomm (QCOM) upgraded to Hold from Sell at Edward Jones

Alphabet (GOOG) downgraded to Hold from Buy at Stifel
Dropbox (DBX) downgraded to Neutral from Buy at BofA
Kellogg (K) downgraded to Neutral from Buy at Goldman Sachs

Before the open: Boise Cascade (BCC), Clorox (CLX), Cooper Tire & Rubber (CTB), EMCOR Group (EME), Ferrari (RACE), Global Payments (GPN), Hudson (HUD), Immunic (IMUX), Jacobs (J), Kosmos Energy (KOS), Loews (L), McKesson (MCK), National Retail Properties (NNN), Quotient (QTNT), SunCoke Energy (SXC), Timken (TKR), Zovio (ZVO)

After the close: AppFolio (APPF), Bruker (BRKR), Chegg (CHGG), Diamondback Energy (FANG), Douglas Dynamics (PLOW), Eastman Chemical (EMN), Five9 (FIVN), Helios Technologies (HLIO), Ingersoll-Rand (IR), Invitation Homes (INVH), Kemper (KMPR), Leggett & Platt (LEG), Masonite International (DOOR), Neurocrine Biosciences (NBIX), Otter Tail (OTTR), Rambus (RMBS), Sterling Construction (STRL), Take-Two Interactive Software (TTWO), Valvoline (VVV), Williams Companies (WMB)

ISM Manufacturing Index - 10:00am
PMI Manufacturing Index - 9:45am
Construction Spending - 10:00am

Gold closed at $1,985.90  an ounce, up $19.10
Silver settled at $24.22  an ounce, up $0.85
Copper finished at $2.87  a pound, down $0.04
Crude Oil was at $40.43  a barrel,
 up $0.05
Bitcoin Investment Trust (GBTC) ended at $12.81 up $0.59

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

   Todd Mitchell

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