The market started off with slight losses on Monday as a significant rise in corona virus cases in a number of states worried Wall Street. Although hospitals remain well equipped for the rapid rise, more states are reopening in different phases that could add to the numbers.
News that a 4th stimulus package could be forthcoming later in the summer lifted spirits with the major indexes rebounding off the morning lows to settle higher. Volatility also closed back below a key level of support but is still giving a neutral reading for the overall market, despite Tech’s strength.
The Nasdaq closed at 10,056 (+1.1), its 20th record high for 2020, after trading to a late session high of 10,059. Current resistance at 10,050 was cleared and held with continued closes above this level signaling momentum towards the 10,200 area.
The Russell 2000 closed on its session high of 1,433 (+1.1%). Prior resistance at 1,425 was recovered with continued closes above this level keeping a retest towards the 1,450 area in focus.
The S&P 500 kissed a session high of 3,120 before closing at 3,117 (+0.7%). Near-term resistance at 3,125 was challenged but held with continued closes above this level signaling upside towards the 3,175 area.
The Dow kissed a late high of 26,059 before closing at 26,024 (+0.6%). Key resistance at 26,000 was recovered with continued closes above this level keeping a retest towards 26,500 in focus.
Discover (DFS) upgraded to Buy from Neutral at UBS
Post Holdings (POST) upgraded to Buy from Neutral at Goldman Sachs
Walmart (WMT) upgraded to Buy from Neutral at UBS
Albemarle (ALB) downgraded to Underweight from Sector Weight at KeyBanc
Cirrus Logic (CRUS) downgraded to Underweight from Equal Weight at Barclays
Kraft Heinz (KHC) downgraded to Sell from Neutral at Goldman Sachs
TUESDAY'S EARNINGS ANNOUNCEMENTS
Before the open: Affimed (AFMD), China Automotive Systems (CAAS), IHS Markit (INFO)After the close: AeroVironment (AVAV), La-Z-Boy (LZB), Yirendai (YRD)
TUESDAY'S ECONOMIC NEWS
Redbook - 8:55am
PMI Manufacturing Index - 9:45am
Richmond Fed Manufacturing Index - 10:00am
Gold closed at $1,766.40 an ounce, up $13.40
Silver settled at $17.90 an ounce,