S&P 500 BUILDING MOMENTUM ON POSITIVE STRING OF RESULTS

S&P 500 futures are currently trading at 2793- higher by about 0.67% as compared to the previous close. The index futures have been closing in the red since the last two trading sessions. The S&P 500 gained as the consumer staples and technology sectors outperformed.

S&P 500-member Procter & Gamble posted better-than-expected earnings, sending the stock up 7.5% at the time of writing. The company said it got a boost from strong beauty-product sales. Other index members, Honeywell and Schlumberger also reported better-than-expected profits.

American Express and PayPal reported their earnings on Thursday that topped market expectations. PayPal has also boosted its outlook for the fourth quarter. Their shares rose 3.6% and 9.7% respectively at the time of writing.

The corporate earnings season is off to a strong start. With more than 15% of S&P 500 companies having reported, 83% have topped market expectations, according to FactSet.

Other top gainers in the S&P 500 include DENTSPLY SIRONA (up 6.7%), Clorox (up 3.19%), Dish Network (up 2.5%) and CenturyLink (up 3.4%) at the time of writing.

On the data front, Existing Home Sales for Sept. released earlier came in at 5.15M. Sales declined 3.4% for the month. Existing-Home Sales fell to the lowest level in almost three years. In addition, the Philadelphia Fed Manufacturing Index for Oct. released on Thursday came in at 22.2. The Manufacturing Index came in above the expectation of 19.7 with the index reading being 22.9 in the previous month.

On the technical front, the RSI is currently at 37.74% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is below the middle line of the Bollinger Bands but is heading upwards.

Overall Bias is Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets. This trade can remain valid until Monday.

Trade Suggestion-Limit Buy At 2780, Take Profit At 2810 Stop Loss At 2765

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