Financials Shine as Bulls Rebound

The market was choppy on Thursday after growing concerns over the rise in new coronavirus cases along with mixed economic news weighed on sentiment. Additionally, companies are debating weather to stay open, close or find a middle ground as cases are on the rise in many states and some firms are facing pressure from employees and politicians to delay openings.

The slightly good news is that coronavirus hot spots still have ample hospital capacity in most cases, suggesting that the health system is well positioned for the current surge in cases. The major indexes rebounded on the bank stress test news into the close after the Financials sector led the way higher.

The Russell 2000 closed on its session high of 1,413 (+1.7%). Prior resistance at 1,400 was cleared and held with continued closes above this level keeping a retest towards the 1,425 area in play.

The Dow kissed a late high of 25,769 before closing at 25,745 (+1.2%). Key resistance at 25,750 was breached but held with continued closes above this level suggesting a retest towards the 26,000 level.

The Nasdaq closed at 10,017 (+1.1%) after trading to a late session high of 10,023. Current resistance at 10,000 was recovered with continued closes above this level signaling momentum up towards the 10,200 area.

The S&P 500 tagged a session high of 3,086 before closing at 3,083 (+1.1%). Near-term resistance at 3,075 was cleared and held with continued closes above this level signaling additional upside towards the 3,100 area.

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ANALYST UPGRADES/DOWNGRADES

Ameriprise (AMP) upgraded to Buy from Neutral at Goldman Sachs
DuPont (DD) upgraded to Outperform from Sector Perform at RBC Capital
Fortive (FTV) upgraded to Outperform from Neutral at Baird

Boeing (BA) downgraded to Sell from Hold at Berenberg
Hudson Pacific (HPP) cut to Equal Weight from Overweight at Morgan Stanley
KB Home (KBH) downgraded to In Line from Outperform at Evercore ISI

FRIDAY'S EARNINGS ANNOUNCEMENTS
Before the open: 58.com (WUBA), Apogee Enterprises (APOG)
After the close: Staffing 360 Solutions (STAF)

THURSDAY'S ECONOMIC NEWS
Producer Price Index - 8:30am
Consumer Sentiment - 10:00am
Baker-Hughes Rig Count - 1:00pm

METALS/ OIL
Gold closed at $1,770.60  an ounce, down $4.50
Silver settled at $17.90 an ounce, up $0.23
Copper finished at $2.66  a pound, up $0.01
Crude Oil was at $39.04 a barrel,
 up $0.91
Bitcoin Investment Trust (GBTC) ended at $10.14 down $0.06


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


   Todd Mitchell


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