Volatility Recovers 50-Day Moving Average

The stock market was up on Tuesday following another batch of corporate earnings that helped sentiment. Harley-Davidson (HD) was one of the biggest surprises after the company reported a profit for the fourth quarter versus expectations for a loss.

Amgen (AMGN) and Chegg (CHGG) also posted solid gains following quarterly numbers. Meanwhile, the financial sector was strong after rising 1.4% with Dow components American Express (AXP) and JPMorgan (JPM) helping lead the blue-chip winners.

The Russell 2000 closed at 2,045 (+1.6%) with the late day high hitting 2,047. Current and lower resistance at 2,025-2,050 was reclaimed. A move above the latter would indicate additional gains towards 2,075-2,100. Below is a chart of the IWM.

The Nasdaq reached an intraday peak of 14,226 before finishing at 14,194 (+1.3%). Lower resistance at 14,200-14,350 was cleared but held. A move above the latter would signal further strength towards 14,500-14,650. 

The Dow ended at 35,462 (+1.1%) following the afternoon run to 35,544. Near-term and lower resistance at 35,500-35,750 was cleared but held. A close above the latter and the 50-day moving average would be a very bullish development with additional momentum towards 36,000-36,250. 

The S&P 500 traded to a high of 4,531 while settling at 4,521 (+0.8%). Lower resistance at 4,525-4,550 was tripped but held. A close above the latter would suggest additional upside towards 4,575-4,600 and the 50-day moving average. 

ANALYST UPGRADES/DOWNGRADES
American Water Works (AWK) upgraded to neutral from sell at UBS
Nasdaq (NDAQ) upgraded to buy from hold at Argus Research

Airbnb (ABNB) downgraded to hold from buy at BTIG
Cerence (CRNC) downgraded to neutral from outperform at Wedbush


WEDNESDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: Avaya Holdings (AVYA), Bunge (BG), CME Group (CME), Honda Motor (HMC), Lithia & Driveway (LAD), Madison Square Garden (MSGE), Orion Energy Systems (OESX), Penske Automotive Group (PAG), Radware (RDWR), Toyota Motor (TM), Yum Brands (YUM)

After the close: American Financial Group (AFG), CleanSpark (CLSK), Diodes (DIOD), Equifax (EFX), Forward Air (FRWD), International Flavors & Fragrances (IFF), iRobot (IRBT), Knowles (KN), Mattel (MAT), MGM Resorts International (MGM), O'Reilly Automotive (ORLY), Pilgrim’s Pride (PPC), RCI Hospitality Holdings (RICK), Sonos (SONO), TTM Technologies (TTMI), Twilio (TWLO), Uber Technologies (UBER), Viking Therapeutics (VKTX), Watts Water Technologies (WTS), Zynga (ZNGA)

WEDNESDAY'S ECONOMIC NEWS
MBA Mortgage Applications - 7:00 am
Wholesale Inventories - 10:00 am

METALS/ OIL
Gold closed at $1,827.90 an ounce, up $6.10
Silver settled at $23.20 an ounce, up $0.12
Copper finished at $4.46 a pound, unchanged
Crude Oil was at $89.78 a barrel down $1.50
Bitcoin Investment Trust (GBTC) ended at $31.35 up $0.78

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

 Todd Mitchell

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