Fed’s Comments Keep Bears in Control

The stock market showed continued weakness on Wednesday with the majority of the major indexes falling for the third-straight session. The Fed’s Beige Book helped fuel bearish sentiment following comments that the U.S. economy slowed in August as concerns grew over how the renewed surge of coronavirus cases would affect the economic recovery.

The Russell 2000 settled at 2,249 (-1.1%) with the morning low reaching 2,241. Fresh and upper support at 2,250-2,225 was breached and failed to hold. A drop below the latter and the 50-day moving average would suggest ongoing weakness towards 2,200-2,175.

The Nasdaq tumbled to an intraday low of 15,206 before closing at 15,286 (-0.6%). Prior and upper support at 15,250-15,100 was breached but held. A move below the latter would signal additional risk towards 15,000-14,850.

The Dow ended at 35,031 (-0.2%) with the low kissing 34,925. Key support at 35,000 and the 50-day moving average were breached but levels that held. A close below the former will likely lead to a retest towards 34,750-34,500.

The S&P 500 tested a low of 4,493 before finishing at 4,514 (-0.1%). Crucial support at 4,500 was tripped but held. A close below this level would signal additional weakness towards 4,475-4,450.

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ANALYST UPGRADES/DOWNGRADES

Albemarle (ALB) double upgraded to Buy from Sell at Berenberg
Ollie's Bargain Outlet (OLLI) upgraded to Buy from Hold at Berenberg
Pure Storage (PSTG) upgraded to Outperform from Market Perform at Northland

Goodrich Petroleum (GDP) downgraded to Hold from Buy at Truist
Regions Financial (RF) downgraded to Equal Weight from Overweight at Stephens
Universal Health (UHS) downgraded to Sell from Neutral at Goldman Sachs

THURSDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: Academy Sports and Outdoors (ASO), Bioceres Crop Solutions (BIOX), Hovnanian Enterprises (HOV), J.Jill (JILL), Lovesac (LOVE), Riskified (RSKD), Tuesday Morning (TUEM), VIA Optronics (VIAO)

After the close: Affirm Holdings (AFRM), American Outdoor Brands (AOUT), Dave & Buster's Entertainment (PLAY), Farmer Brothers (FARM), ImmunoPrecise Antibodies (IPA), KLX Energy Services (KLXE), LightPath Technologies (LPTH), MamaMancini's (MMMB), PowerSchool Holdings (PWSC), Radiant Logistics (RLGT), Sumo Logic (SUMO), Traeger (COOK), Verint Systems (VRNT), Zumiez (ZUMZ)

THURSDAY'S ECONOMIC NEWS
Jobless Claims - 8:30am

METALS/ OIL
Gold closed at $1,793.50 an ounce, down $5.00
Silver settled at $24.06  an ounce, down $0.21
Copper finished at $4.23 a pound, down $0.05
Crude Oil was at $69.18 a barrel,  up $0.79
Bitcoin Investment Trust (GBTC) ended at $37.52 down $0.29

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

 Todd Mitchell

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