Financial Earnings Shine, Airline Earnings Disappoint

The stock market struggled on Tuesday as the start of the 3Q earnings season officially got underway with the Financial sector pleasing Wall Street analysts while the Airline sector widely disappointed. However, despite solid beats by the banking companies, shares of Citigroup (C) and JPMorgan Chase & Co. (NYSE: JPM) closed lower for the session with the former falling nearly 5%.

The coronavirus treatment optimism also weighed on sentiment following news from Johnson & Johnson (JNJ) and Eli Lilly (LLY) regarding pauses of their studies of vaccines and antibody therapeutics. Apple (AAPL) shares weighed on Tech despite the announcement of its new iPhone 12 models.

The Nasdaq tested an intraday low of 11,821 before ending at 11,863 (-0.1%). Fresh and upper support at 11,800-11,700 was challenged but held. A close below the latter would indicate additional back-test potential towards 11,600-11,500.

The S&P 500 settled at 3,511 (-0.6%) following the afternoon drop to 3,500. Near-term and upper support at 3,500-3,475 was tapped but held. A close below the latter would signal a further fade towards 3,450-3,425.

The Dow tapped a late day low of 28,604 while closing at 28,679 (-0.6%). Current and upper support at 28,750-28,500 failed to hold. A move below the latter would suggest a retest towards 28,250-28,000.

The Russell 2000 closed at 1,636 (-0.7%) after testing a morning low of 1,631. New and upper support at 1,635-1,620 was breached but held. A drop below the latter would indicate further weakness towards 1,615-1,600.

The losses snapped 4-session winning streak’s for the major indexes with near-term support levels easily holding. However, volatility is back on the rise after failing to close below 25 last Friday and Monday. While this level was stretched on both days, it was a good indication the retest towards all-time highs for the stock market wasn’t going to be smooth sailing.

Mess Up ALL Your Trades & Still PROFIT
Every Week Like Clockwork!

unique income strategy allows you to profit regardless if the market goes up, down or sideways…as high as 84.2% accuracy & puts money into your account as soon as you place the trade!

These unique ‘Income Trades’ have limited risk and they typically play out in a few days.

Perfect for boosting your weekly income and building your retirement account.

Go here to learn more about Creating a Steady Stream of Profits Each Week Like Clockwork

ANALYST UPGRADES/DOWNGRADES

Exxon Mobil (XOM) upgraded to Neutral from Sell at Goldman Sachs
Foot Locker (FL) double upgraded to Buy from Underperform at BofA
Unilever (UN) upgraded to Outperform from Neutral at Exane BNP Paribas

Activision Blizzard (ATVI) downgraded to Market Perform from Outperform at BMO Capital
American Airlines (AAL) downgraded to Negative from Neutral at Susquehanna
Illumina (ILMN) downgraded to Neutral from Buy at Guggenheim

WEDNESDAY'S EARNINGS ANNOUNCEMENTS
Before the open: ASML Holding (ASML), Bank of America (BAC), Goldman Sachs (GS), Infosys Technologies (INFY), PNC Bank (PNC), Progressive (PGR), U.S. Bancorp (USB), UnitedHealth Group (UNH), Wells Fargo & Co. (WFC)

After the close: Alcoa (AA), Heritage-Crystal Clean (HCCI), Sleep Number (SNBR), United Airlines (UAL)

WEDNESDAY'S ECONOMIC NEWS
MBA Mortgage Applications - 7:00am
Producer Price Index - 8:30am
Beige Book - 2:00pm

METALS/ OIL
Gold closed at $1,894.60 an ounce,  down $34.30
Silver settled at $24.13 an ounce,  down $1.14
Copper finished at $3.04 a pound, down $0.02
Crude Oil was at $40.13 a barrel, 
up $0.48
Bitcoin Investment Trust (GBTC) ended at $12.38 down $0.28


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


   Todd Mitchell


Not sure the best way to get started?

Follow these 3 simple steps ...

Step #1: Get These FREE Reports & Videos

Options INCOME  Profits   8 Video  Series    Habits that Kill Traders...



Step #2: Enroll in an Advisory or Educational Program
Premium Advisories | Featured  Educational  Programs 



Step #3: Connect with The Community
Trading Concepts Official Facebook Page