Wall Street was choppy on Tuesday with a mixed result as rising Treasury yields weighed on Tech, while gains in the Financial and Energy sectors helped limit the damage in the broader market. Volatility spiked above a key level of resistance for the first time since early October, but held, as investors stayed cautious during the holiday shortened week.
The Nasdaq closed at 15,775 (-0.5%) after testing a morning low of 15,601. Prior and upper support from earlier this month at 16,750-16,600 was tripped but held. A move below the latter would likely suggest an ongoing fade towards 15,500-15,350.
The Russell 2000 ended at 2,327 (-0.2%) with the session low hitting 2,303. Upper support from late October at 2,325-2,300 was breached but held. A drop below the latter would indicate additional weakness towards 2,275-2,250 and the 50-day moving average. Below is a chart of the IWM.
The S&P 500 tested a low of 4,652 while settling slightly higher at 4,692 (+0.2%). Near-term and upper support at 4,675-4,650 was violated but held. A close below the latter would be an bearish development with downside risk towards 4,625-4,600.
The Dow was up for the second-straight session after tapping a high of 35,841 before finishing at 35,813 (+0.6%). Current and lower resistance at 35,750-36,000 was reclaimed. A close above the latter would signal additional upside towards 36,250-36,500.
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Bumble (BMBL) upgraded to Outperform from In Line at Evercore ISI
Micron (MU) upgraded to Buy from Neutral at Mizuho
TransDigm (TDG) upgraded to Buy from Neutral at BofA
eBay (EBAY) downgraded to Neutral from Buy at Guggenheim
Spire (SR) downgraded to Underperform from Neutral at BofA
Zoom Video (ZM) downgraded to Neutral from Buy at BofA
WEDNESDAY'S EARNINGS ANNOUNCEMENTS
Before the open: Cheetah Mobile (CMCM), Deere & Company (DE), Golden Ocean Group (GOGL), Jiayin Group (JFIN), Viomi Technology (VOIT)
After the close: Anavex Life Sciences (AVXL), Global Cord Blood (CO)
WEDNESDAY'S ECONOMIC NEWS
MBA Mortgage Applications - 7:00am
Jobless Claims - 8:30am
New Home Sales - 10:00am
Consumer Sentiment - 10:00am
Gold closed at $1,783.80 ounce, down $22.50
Silver settled at $23.43 an ounce, down $0.87
Copper finished at $4.42 a pound, up $0.02
Crude Oil was at $78.50 a barrel, up $2.15
Bitcoin Investment Trust (GBTC) ended at $46.88, up $1.73
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