The stock market finished well off session lows but ended with losses for the third-straight session on Thursday, as rising coronavirus cases, especially in Europe, resulted in new restrictions on businesses and travel.
Also weighing on sentiment was a rise in weekly jobless claims and a lack of progress in Congress on another coronavirus stimulus package which is now unlikely until after the November 3rd elections. Earnings were mixed but came in mostly better-than-expected while volatility continues to give a neutral reading.
The Nasdaq tested an opening low of 11,559 before closing at 11,713 (-0.5%). Near-term and upper support at 11,600-11,500 was breached but held. A close below the latter would signal additional weakness towards 11,400-11,300.
The S&P 500 settled at 3,483 (-0.2%) following the intraday back-test to 3,440. Current and upper support at 3,450-3,425 was tripped but held. A close below the latter would suggest further downside risk towards 3,400-3,375 and the 50-day moving average.
The Dow traded a low of 28,181 while ending at 28,494 (-0.1%). New and upper support at 28,250-28,000 was tripped but held. A drop below the latter and the 50-day moving average would indicate a retest towards 27,750-27,500.
The Russell 2000 made a run to 1,641 before finishing at 1,638 (+1.1%). Current and lower resistance at 1,635-1,650 was recovered. A move above the latter would suggest further strength towards 1,660-1,675.
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Evergy (EVRG) upgraded to Overweight from Equal Weight at Wells Fargo
Sonos (SONO) upgraded to Buy from Neutral at BofA
ViacomCBS (VIAC) upgraded to Overweight from Equal Weight at Barclays
BP (BP) downgraded to Reduce from Buy at AlphaValue
Progressive (PGR) downgraded to Equal Weight from Overweight at Morgan Stanley
Restaurant Brands (QSR) downgraded to Perform from Outperform at Oppenheimer
FRIDAY'S EARNINGS ANNOUNCEMENTS
Before the open: Ally Financial (ALLY), Badger Meter (BMI), Citizens Financial Group (CFG), J.B. Hunt Transport (JBHT), Kansas City Southern (KSU), Schlumberger (SLB), State Street (STT), VF Corp. (VFC)
After the close: None
THURSDAY'S ECONOMIC NEWS
Industrial Production - 9:15am
Retail Inventories - 8:30am
Consumer Sentiment - 10:00am
NAHB Housing Market Index - 10:00am
Baker-Hughes Rig Count - 1:00pm
Gold closed at $1,907.30 an ounce,