The market closed mostly lower on Thursday, aside from Tech, as disappointing GDP and jobless claims numbers weighed on sentiment. Specifically, Q2 GDP contracted at an historic -32.9% rate while Initial Jobless Claims rose 12,000 to 1,434,000 versus forecasts of 1,388,000.
The major indexes rebounded off their session lows while holding key support levels ahead of the busiest day for 2Q earnings. After the close, a number of high profile companies, including Apple (AAPL) and Facebook (FB), smashed expectations with shares surging 5% and 6% in after hours trading.
The Nasdaq traded to a late day high of 10,609 while ending at 10,587 (+0.4%). Near-term resistance at 10,600 was breached but held with a close above this level signaling additional strength towards 10,800 and possible fresh all-time highs.
The Dow tested a morning low of 25,992 before closing at 26,313 (-0.9%). Major support at 26,250 and the 200-day moving average were breached but levels that held with a close below the 26,000 level leading to a further pullback towards 25,500.
The S&P 500 settled at 3,222 (-0.4%) following the opening tumble to 3,204. Crucial support at 3,200 was challenged but held with a close below this level indicating additional weakness towards the 3,150 level.
The Russell 2000 sank to a low of 1,475 while finishing at 1,495 (-0.4%). Crucial resistance at 1,475 was tapped but held with a move below this level leading to a further pullback towards 1,450 and the 200-day moving average.
American Eagle (AEO) upgraded to Buy from Neutral at Citi
Apache (APA) upgraded to Buy from Hold at Stifel
Celanese (CE) upgraded to Overweight from Neutral at JPMorgan
Armstrong World (AWI) downgraded to Neutral from Outperform at Credit Suisse
Chefs' Warehouse (CHEF) downgraded to Neutral from Overweight at Piper Sandler
L Brands (LB) downgraded to Sell from Neutral at Citi
FRIDAY'S EARNINGS ANNOUNCEMENTS
Before the open: AbbVie (ABBV), Booz Allen Hamilton (BAH), Caterpillar (CAT), Dominion Energy (D), Exxon Mobil (XOM), Fiat Chrysler Automobiles (FCAU), Goodyear Tire & Rubber (GT), Hill-Rom Holdings (HRC), Illinois Tool Works (ITW), Johnson Controls (JCI), Lazard (LAZ), Merck (MRK), Newell Brands (NWL), Phillips 66 (PSX), Ruth's Hospitality Group (RUTH), Snap-On (SNA), Telus (TU), Under Armour (UAA), Weyerhaeuser (WY)
After the close: DAVIDsTEA (DTEA), GlycoMimetics (GLYC), Intuit (INTU), Unity Biotechnology (UBX)
FRIDAY'S ECONOMIC NEWS
Employment Cost Index - 8:30am
Chicago PMI - 9:45am
Consumer Sentiment - 10:00am
Baker-Hughes Rig Count - 1:00pm
Gold closed at $1,966.80 an ounce,