Volatility Rises on Market Pullback

Dow
The stock market pulled back on Tuesday as traders remained cautious ahead of key earnings reports after the bell and Wednesday’s Federal Reserve announcement. Ongoing weakness in U.S.-listed Chinese stocks also weighed on sentiment as fears over more regulations persisted with volatility clearing but holding a key level of resistance.
 
The Nasdaq tumbled to a midday low of 14,503 before closing at 14,660 (-1.2%). New and upper support at 14,650-14,500 was tripped but held. A move below the latter would signal risk towards 14,350-14,200 and the 50-day moving average.
 
The Russell 2000 settled at 2,191 (-1.1%) with the intraday low reaching 2,171. Prior and upper support at 2,175-2,150 was breached but held. A close below the latter would suggest ongoing weakness towards 2,125-2,100. Below is a chart of the IWM.
       
The S&P 500 tested a low of 4,372 before finishing at 4,401 (-0.5%). Fresh and upper support at 4,375-4,350 was breached but held. A close below the latter would signal additional weakness towards 4,325-4,300.
       
The Dow ended at 35,058 (-0.2%) with the low kissing 34,878. Current and upper support at 35,000-34,750 was clipped but held. A close below the latter would likely lead to a retest towards 34,500-34,250 and the 50-day moving average.

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ANALYST UPGRADES/DOWNGRADES

American Airlines (AAL) upgraded to Neutral from Negative at Susquehanna
Texas Capital (TCBI) upgraded to Outperform from Neutral at Wedbush
Weyerhaeuser (WY) upgraded to Buy from Neutral at BofA

AT&T (T) downgraded to Hold from Buy at Argus
O'Reilly Automotive (ORLY) downgraded to Market Perform from Outperform at Raymond James
Northwest Bancshares (NWBI) downgraded to Neutral from Buy at B. Riley

WEDNESDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: Avery Dennison (AVY), Boeing (BA), CME Group (CME), Driven Brands Holdings (DRVN), Eagle Materials (EXP), Garmin (GRMN), Generac Holdings (GNRC), Hess (HES), Littelfuse (LFUS), McDonalds (MCD), New York Community Bancorp (NYCB), Old Dominion Freight Line (ODFL), Pfizer (PFE), Ryder System (R), Shopify (SHOP), Teledyne Technologies (TDY), United Microelectronics (UMC), Vertiv Holdings (VRT), Wingstop (WING)

After the close: AvalonBay Communities (AVB), Benchmark Electronics (BHE), Cirrus Logic (CRUS), Duke Realty (DRE), Equinix (EQIX), Facebook (FB), Ford Motor (F), Getty Realty (GTY), Hologic (HOLX), Ingersoll-Rand (IR), iRobot (IRBT), JAKKS Pacific (JAKK), Kilroy Realty (KRC), Lam Research (LRCX), MaxLinear (MXL), NuVasive (NUVA), O'Reilly Automotive (ORLY), PayPal (PYPL), Qualcomm (QCOM), Raymond James Financial (RJF), Safe Bulkers (SB), Tetra Tech (TTEK), United Rentals (URI), Vanda Pharmaceuticals (VNDA), Wyndham Hotels & Resorts (WH), Xilinx (XLNX), Yum China Holdings (YUMC)

WEDNESDAY'S ECONOMIC NEWS
MBA Mortgage Applications - 7:00am
FOMC Minutes -
2:00pm

METALS/ OIL
Gold closed at $1,799.80 an ounce, up $0.60
Silver settled at $24.65 an ounce, down $0.67
Copper finished at $4.54 a pound, down $0.05
Crude Oil was at $72.92 a barrel, down $0.27
Bitcoin Investment Trust (GBTC) ended at $33.00 up $0.79

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

 Todd Mitchell

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