Mixed Action to Start the Week

The stock market was mixed on Monday following a choppy session as earnings and renewed Federal Reserve worries weighed on sentiment. The action comes ahead of this week’s Consumer Price Index (CPI) and will likely reveal another sky high print on inflation that could prompt the Fed to assert the more hawkish stance it has recently taken.

The Russell 2000 closed at 2,012 (+0.5%) with the high hitting 2,027. Current and lower resistance at 2,025-2,050 was cleared but held. A move above the latter would indicate additional gains towards 2,050-2,075. Below is a chart of the IWM.

The Dow reached a peak of 35,325 before finishing a point higher at 35,091 (+0.0%). Lower resistance at 35,250-35,500 was cleared but held. A pop above the latter and the 50-day moving average would suggest further strength towards 35,750-36,000.

The S&P 500 ended at 4,483 (-0.4%) after tagging an intraday low of 4,471. Near-term and upper support at 4,475-4,450 was breached but held. A drop below the latter and the 200-day moving average would be a bearish development with downside risk towards 4,425-4,400.

The Nasdaq tested a low of 13,974 before ending at 14,015 (-0.6%). Key support at 14,000 was tripped but held. A close below this level would signal a retest towards 13,900-13,750.

ANALYST UPGRADES/DOWNGRADES

Black Hills (BKH) upgraded to buy from neutral at Mizuho
Helen of Troy (HELE) upgraded to buy from neutral at Sidoti & Co.

Ballard Power (BLDP) downgraded to market perform at BMO Capital
Skywest (SKYW) downgraded to outperform from strong buy at Raymond James

TUESDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: Aramark Holdings (ARMK), BP (BP), Coty (COTY), Fiserv (FISV), Gartner (IT), Harley-Davidson (HOG), Jacobs (J), Lear (LEA), Malibu Boats (MBUU), Pfizer (PFE), RGC Resources (RGCO), Sysco (SYY), Thomson Reuters (TRI), Virtu Financial (VIRT), Warner Music Group (WMG)

After the close: Assurant (AIZ),Chipotle Mexican Grill (CMG), Digital Turbine (APPS), FleetCor Technologies (FLT), GlobalFoundries (GFS), Hub Group (HUBG), IsoRay (ISR), Lyft (LYFT), Nabors Industries (NBR), Omnicom Group (OMC), Peloton Interactive (PTON), Qiagen (QGEN), ScanSource (SCSC), Trimble (TRMB), Voya Financial (VOYA), XPO Logistics (XPO)

TUESDAY'S ECONOMIC NEWS
NFIB Small Business Optimism Index - 6:00am
International Trade in Goods - 8:30am

S&P 500

METALS/ OIL
Gold closed at $1,821.80 an ounce, up $14.00
Silver settled at $23.08 an ounce, up $0.60
Copper finished at $4.46 a pound, down $0.03
Crude Oil was at $91.28 a barrel down $0.62
Bitcoin Investment Trust (GBTC) ended at $30.57 up $2.61

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

 Todd Mitchell

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