. Futures slip as bond yields rise, BofA up on strong consumer lending

Futures slip as bond yields rise, BofA up on strong consumer lending

Futures slip as bond yields rise, BofA up on strong consumer lending

U.S. stock index futures

S&P 500 is trading down 1.21% at 4392.60

U.S. stock index futures dipped on Monday as Treasury yields continued to rise in expectation of a tighter monetary policy, while Bank of America wrapped up earnings from Wall Street lenders with a better-than-expected quarterly profit.

Bank of America Corp (NYSE:BAC), the second-largest U.S. bank by assets, edged 1% higher in premarket trading after recording a strong growth in its consumer lending business.

Market response to first-quarter bank earnings have been mixed as JPMorgan Chase & Co (NYSE:JPM), Goldman Sachs Group Inc (NYSE:GS) and Citigroup Inc (NYSE:C) combined put aside $3.36 billion in credit loss reserves due to risks from the Ukraine war and rising inflation.

Overall, analysts expect aggregate annual S&P 500 earnings growth of 6.3%, as of last week, less optimistic than the 7.5% growth projected at the start of the year, according to Refinitiv data.

However, Tesla Inc rose 0.8% as the electric automaker began preparing to reopen its Shanghai plants as the city speeds up efforts to get back to normal after a nearly three-week COVID shutdown.

Data earlier showed China’s economy slowed in March despite better-than-expected first-quarter growth numbers, worsening an outlook already clouded by COVID-19 curbs and the Ukraine war.

On technical fronts S&P 500 RSI stood at 31.50 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss:

TRADE SIGNAL – : S&P 500 – SELL: 4374.89, TARGET: 4275.34, STOP LOSS: 4436.07

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