Bulls Regain Momentum

The stock market showed continued strength on Monday ahead of the busiest week for first-quarter earnings and the start of the Fed’s two-day policy meeting. For the S&P 500 companies that have reported results thus far, 84% have topped estimates and would represent the highest number recorded if this trend holds.

Wall Street is expecting the Federal Reserve will remain ultra-accommodative and is not really looking for any surprises or significant changes in the outlook versus March. Meanwhile, volatility was slightly higher despite the higher market close after failing to hold a key level of support for the sixth-straight session.

The Russell 2000 tested a midday high of 2,302 before closing at 2,298 (+1.2%). Prior and lower resistance from early March at 2,300-2,325 was breached but held. A rise above the latter would signal momentum towards 2,350-2,375 with the all-time peak at 2,360. 

The Nasdaq tapped an intraday peak of 14,154 while finishing at 14,138 (+0.9%). Key resistance at 14,150 was cleared but held. A close above this level and the record high at 14,175 would indicate a breakout towards 14,250-14,400.

The S&P 500 made a run to 4,194 before ending at 4,187 (+0.2%). Key resistance at 4,200 was challenged but held for the second-straight session. A move above this level would suggest ongoing strength towards 4,225-4,250 and fresh record highs.

The Dow settled in the red at 33,981 (-0.2%) with the late day low tagging 33,941. Near-term and upper support at 34,000-33,750 failed to hold. A drop below the latter would signal weakness towards 33,500-33,250.

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ANALYST UPGRADES/DOWNGRADES

Brunswick (BC) upgraded to Buy from Neutral at Citi
Noah Holdings (NOAH) upgraded to Overweight from Neutral at JPMorgan
Simon Property (SPG) upgraded to Outperform from In Line at Evercore ISI

Best Buy (BBY) downgraded to Neutral from Outperform at Wedbush
Etsy (ETSY) downgraded to Sector Weight from Overweight at KeyBanc
Polaris (PII) downgraded to Neutral from Buy at Citi

TUESDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: 3M Company (MMM), Archer-Daniels-Midland (ADM), BP (BP), Corning (GLW), DTE Energy (DTE), Eli Lilly & Co. (LLY), Fiserv (FISV). General Electric (GE), Hasbro (HAS), Independent Bank (IBCP), JetBlue Airways (JBLU), Lincoln Electric Holdings (LECO), Marsh & McLennan Companies (MMC), Novartis International (NVS), PulteGroup (PHM), Raytheon Technologies (RTX), Sherwin-Williams (SHW), TransUnion (TRU), United Parcel Service (UPS), Waste Management (WM)

After the close: Advanced Micro Devices (AMD), Alphabet (GOOGL), Boston Properties (BXP), Capital One Financial (COF), EastGroup Properties (EGP), F5 Networks (FFIV), Hawaiian Holdings (HA), Illumina (ILMN), Juniper Networks (JNPR), Microsoft (MSFT), Navient (NAVI), Pinterest (PINS), QCR Holdings (QCRH), Renasant (RNST), Starbucks (SBUX), Texas Instruments, (TXN), Visa (V), WesBanco (WSBC)

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

METALS/ OIL
Gold closed at $1,780.10 an ounce,  up $2.30
Silver settled at $26.21 an ounce, up $0.13
Copper finished at $4.44 a pound, up $0.10
Crude Oil was at $61.94 a barrel, down $0.10
Bitcoin Investment Trust (GBTC) ended at $45.91 up $3.53

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

 Todd Mitchell

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