Wall Street Rises for the Third-Straight Session

The stock market showed continued strength on Tuesday despite disappointing updates on manufacturing and employment. Specifically, the Institute for Supply Management’s (ISM) fell to a 14-month low with a reading of 57.6 while job openings held above the 10 million level for the seventh-straight month.

The Russell 2000 traded to a late day high of 2,052 while ending at 2,050 (+1.1%). Key resistance at 2,050 was cleared and held. Continued closes above this level would be a bullish development for a run towards 2,075-2,100. Below is a chart of the IWM.

The Dow traded to an intraday peak of 35,441 before settling at 35,405 (+0.8%). Fresh and lower resistance at 35,250-35,500 was cleared and held. A move above the latter and the 50-day moving average would indicate ongoing upside towards 35,750-36,000.

The S&P 500 ended at 4,546 (+0.7%) after tapping an afternoon high of 4,550. Prior and lower resistance from early December at 4,550-4,575 was cleared but held. A pop above the latter would suggest further strength towards 4,600-4,625 and the 50-day moving average.

The Dow finished at 35,131 (+1.7%) after tapping a high of 35,148. Lower resistance at 35,000-35,250 and the 200-day moving average were reclaimed. A move above the latter would suggest additional momentum towards 35,500-35,750.

ANALYST UPGRADES/DOWNGRADES

Albermarle (ALB) upgraded to neutral from underperform at BofA Securities
Flywire (FLYW) upgraded to strong buy from outperform at Raymond James
Workday (WDAY) upgraded to outperform from neutral at BMO Capital

Booz Allen Hamilton (BAH) double downgraded to underperform from buy at BofA Securities
Freeline (FRLN) downgraded to sell from neutral at J.P. Morgan

WEDNESDAY'S EARNINGS ANNOUNCEMENTS 
Before the open: AbbVie (ABBV), Boston Scientific (BSX), C.H. Robinson Worldwide (CHRW), D.R. Horton (DHI), Emerson Electric (EMR), Ferrari (RACE), Humana (HUM), Johnson Controls (JCI), Marathon Petroleum (MPC), New York Times (NYT), Old Dominion Freight Line (ODFL), Roper Technologies (ROP), Sally Beauty Holdings (SBH), Thermo Fisher Scientific (TMO), Waste Management (WM)

After the close: Allstate (ALL), CMC Materials (CCMP), Digi International (DGII), Fortune Brands Home & Security (FBHS), Hillenbrand (HI), MaxLinear (MXL), Qualcomm (QCOM), Red Rock Resorts (RRR), Spotify Technology (SPOT), T-Mobile US (TMUS), Yellow Roadway (YELL)

WEDNESDAY'S ECONOMIC NEWS
ADP Employment Report - 8:15am
MBA Mortgage Applications - 7:00am

METALS/ OIL
Gold closed at $1,801.50 an ounce, up $5.10
Silver settled at $22.59 an ounce, up $0.20
Copper finished at $4.43 a pound, up $0.11
Crude Oil was at $88.34 a barrel up $0.01
Bitcoin Investment Trust (GBTC) ended at $26.27 up $0.03

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

 Todd Mitchell

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