Fed Stands Pat, Market Holds Gains

The market closed higher on Wednesday following the latest Fed update and mostly upbeat earnings. The opening gains held into the closing bell after the Federal Reserve announced they would leave interest rates unchanged and pledged to keep monetary policy loose until the U.S. economy recovers from the slowdown caused by the corona virus pandemic.

The gains were a bullish signal following the previous session losses with a number of Tech companies reporting positive numbers after Wednesday’s close. Volatility was also timid and is approaching February levels before the outbreak of the corona virus, and is confirming another leg higher for the major indexes.

The Russell 2000 closed at 1,500 (+2.2%) and a point off the session peak at 1,501. Major resistance at 1,500 was recovered with continued closes above this level indicating a run towards the 1,525 area.

The Nasdaq tested a high of 10,567 while settling at 10,542 (+1.4%). Near-term resistance at 10,500 was cleared and held with continued closes above this level signaling a retest towards the 10,650 level.

The S&P 500 tagged a late day high of 3,264 while finishing at 3,258 (+1.2%). Prior resistance at 3,225 was reclaimed with continued closes above this level signaling additional strength towards 3,250.

The Dow went out at 26,539 (+0.6%) with the 2nd-half high hitting 26,602. Key resistance at 26,500 was cleared and held to keep upside towards 27,000 in play.

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AMD (AMD) was upgraded to Positive from Neutral at Susquehanna
L Brands (LB) upgraded to Overweight from Neutral at JPMorgan
Quest Diagnostics (DGX) upgraded to Overweight from Sector Weight at KeyBanc

Armstrong World (AWI) downgraded to Underperform from In Line at Evercore ISI
T-Mobile (TMUS) downgraded to Sector Perform from Outperform at RBC Capital
Seagate (STX) was downgraded to Hold from Buy at Benchmark

Before the open: American Tower (AMT), Baxter International (BAX), Comcast (CMCSA), Dunkin' Brands Group (DNKN), Eli Lilly (LLY), Fannie Mae (FNMA), Generac Holdings (GNRC), HanesBrands (HBI), International Paper (IP), Keurig Dr Pepper (KDP), Mastercard (MA), Newmont Mining (NEM), Oshkosh (OSK), Procter & Gamble (PG), Stanley Black & Decker (SWK), Textron (TXT), United Parcel Service (UPS), Valero Energy (VLO), Waste Management (WM), Xylem (XYL), Yum Brands (YUM)

After the close: Alphabet (GOOG), Amazon.com (AMZN), Apple (AAPL), Beazer Homes USA (BZH), Cabot Oil & Gas (COG), Deckers Brands (DECK), El Pollo Loco Holdings (LOCO), Electronic Arts (EA), Facebook (FB), Gilead Sciences (GILD), Hub Group (HUBG), MGM Resorts International (MGM), Opko Health (OPK), Power Integrations (POWI), Redfin (RDFN), Shake Shack (SHAK), Tandem Diabetes Care (TNDM), United States Steel (X), ViewRay (VRAY), Xilinx (XLNX), Zendesk (ZEN)

Jobless Claims - 8:30am
GDP - 8:30am

Gold closed at $1,953.40   an ounce, up $8.00
Silver settled at $24.32 an ounce, down $0.02
Copper finished at $2.92 a pound, unchanged
Crude Oil was at $41.27  a barrel,
 up $0.02
Bitcoin Investment Trust (GBTC) ended at $12.35 down $0.18

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

   Todd Mitchell

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