Volatility Closes Back Below 20

Dow Jones futures
The stock market rebounded on Tuesday following upbeat earnings news and revived economic optimism. Specifically, second-quarter numbers have topped forecasts with over 90% of the 56 companies on the S&P 500 reporting better-than-expected results thus far.
 
All 11 major sectors in the S&P 500 closed higher with Industrials and Financials leading the charge with gains of 2.8% and 2.5%, respectively. Meanwhile, volatility simmered after recovering a key level of support.
 
The Russell 2000 snapped a five-session slide after reaching an intraday peak of 2,206 while settling at 2,194 (+3%). Key resistance at 2,200 was cleared but held. Continued closes above this level would suggest a retest towards 2,225-2,250. Below is a chart of the IWM.
    
The Dow closed at 34,511 (+1.6%) after trading to an afternoon high of 34,621. Key resistance at 34,500 was recovered on the close back above the 50-day moving average. Continued closes above these levels would be a renewed bullish development for a run towards 34,750-35,000 with the all-time peak from early May at 35,091.
     
The Nasdaq tapped a high of 14,555 before finishing at 14,498 (+1.6%). Current and key resistance at 14,500 was cleared but held. A close above this level keeps another run towards 14,650-14,800 in play with the recent lifetime top at 14,803.
      
The S&P 500 tagged a high of 4,336 before ending at 4,323 (+1.5%). Lower resistance at 4,325-4,350 was breached but held. A move above the latter would indicate additional upside towards 4,375-4,400 with last Wednesday’s record high at 4,393. 
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ANALYST UPGRADES/DOWNGRADES

BNY Mellon (BK) upgraded to Buy from Hold at Argus
Krystal Biotech (KRYS) upgraded to Buy from Neutral at Goldman Sachs
LivaNova (LIVN) upgraded to Buy from Hold at Needham

Ardelyx (ARDX) downgraded to Neutral from Outperform at Wedbush
Consolidated Edison (ED) downgraded to Underweight from Sector Weight at KeyBanc
FMC Corporation (FMC) downgraded to Hold from Buy at Loop Capital

WEDNESDAY'S EARNINGS ANNOUNCEMENTS 
Before the open:  Anthem (ANTM), Baker Hughes (BKR), Coca-Cola (KO), FirstCash (FCFS), Harley-Davidson (HOG), Interpublic Group of Companies, (IPG), Johnson & Johnson (JNJ), Knight-Swift Transportation Holdings (KNX), Lithia & Driveway (LAD), M&T Bank (MTB), Nasdaq (NDAQ), OFG Bancorp (OFG), Rogers Communications (RCI), Seagate Technology (STX), Travelzoo (TZOO), Universal Stainless & Alloy Products (USAP), Verizon Communications (VZ), World Acceptance (WRLD)

After the close: Bright Scholar Education Holdings (BEDU), Cohen & Steers (CNS), Crown Castle International (CCI), Discover Financial Services (DFS), Equifax (EFX), First Industrial Realty Trust (FR), Graco (GGG), Howard Bancorp (HBMD), Kaiser Aluminum (KALU), Kinder Morgan (KMI), Landstar System (LSTR), Las Vegas Sands (LVS), Moelis & Company (MC), NetGear (NTGR), OneMain Holdings (OMF), Plexus (PLXS), Resources Global Professionals (RGP), Sallie Mae (SLM), Tenet Healthcare (THC), Texas Instruments (TXN), Universal Forest Products (UFPI), Valmont Industries (VMI), Washington Trust Bancorp (WASH), Whirlpool (WHR)

WEDNESDAY'S ECONOMIC NEWS
MBA Mortgage Applications - 7:00am

METALS/ OIL
Gold closed at $1,811.40 an ounce, up $2.20
Silver settled at $25.00 an ounce, down $0.14
Copper finished at $4.26 a pound, up $0.06
Crude Oil was at $67.32 a barrel, up $0.71
Bitcoin Investment Trust (GBTC) ended at $24.02 down $1.23

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

 Todd Mitchell

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