Small-Caps Show Strength in Lackluster Action

Value Stocks

The stock market showed continued weakness on Tuesday despite a blowout consumer confidence number as rising rates once again weighed on Tech and the broader indexes. The Conference Board’s closely watched consumer confidence index increased to 109.7 in March from 90.4 in February, representing the highest level since the start of the pandemic.

Meanwhile, the benchmark 10-year Treasury yield rose to about 1.75% and a 14-month peak. Small-caps managed to show strength despite the crosswinds while volatility eased back towards prior support levels.

The Nasdaq closed at 13,045 (-0.1%) with the opening low hitting 12,922. Near-term and upper support at 13,000-12,850 was clipped but held for the second-straight session. A drop below the latter would indicate weakness towards 12,750-12,600.2

The Dow tested an intraday low of 32,988 before settling at 33,066 (-0.3%). Mid-month and upper support at 33,000-32,750 was breached but held. A move below the latter would signal a further slide towards 32,500-32,250.

The S&P 500 traded to a first half low of 3,944 while ending at 3,958 (-0.3%). Current and upper support at 3,950-3,925 was breached but also held for the second-straight session. A close below the latter would suggest a further fade towards 3,900-3,875 and the 50-day moving average.

The Russell 2000 finished at 2,195 (+1.7%) after tapping an afternoon peak of 2,202. Prior and lower resistance at 2,200-2,25 was cleared but held. A move above the latter would signal another run towards 2,225-2,250. Below is a chart of the IWM.

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ANALYST UPGRADES/DOWNGRADES

Alphabet (GOOGL) upgraded to Buy from Hold at Stifel
Texas Instruments (TXN) upgraded to Overweight from Sector Weight at KeyBanc
ViacomCBS (VIAC) upgraded to Neutral from Underperform at Credit Suisse

Airbus (EADSY) downgraded to Neutral from Buy at Citi
CNX Resources (CNX) downgraded to Hold from Buy at Truist
T. Rowe Price (TROW) downgraded to Neutral from Outperform at Credit Suisse

WEDNESDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: Acuity Brands (AYI), Better Choice Company (BTTR), Conn's (CONN), Delcath Systems (DCTH), Greenlane Holdings (GNLN), UniFirst (UNF), Walgreens Boots Alliance (WBA))

After the close: Arcimoto (FUV), Chicken Soup for the Soul Entertainment (CSSE), Dave & Buster's Entertainment (PLAY), Eastside Distilling (EAST), Guess (GES), Micron Technology (MU), NovaGold Resources (NG), Precipio (PRPO), Remark Holdings (MARK), Rockwell Medical Technologies (RMTI), Sportsman's Warehouse Holdings (SPWH), Verint Systems (VRNT), XpresSpa Group (XSPA)
Economic News

WEDNESDAY’S ECONOMIC NEWS
​MBA Mortgage Applications - 7:00am
ADP Employment Report - 8:15am
Chicago PMI - 9:45am

METALS/ OIL
Gold closed at $1,686.00 an ounce,  down $28.60
Silver settled at $24.14 an ounce, down $0.63
Copper finished at $3.98 a pound, down $0.05
Crude Oil was at $60.46 a barrel, down $1.15
Bitcoin Investment Trust (GBTC) ended at $50.82 up $1.37

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

 Todd Mitchell

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