S&P 500 EDGES UP ON GAINS IN MICROSOFT AND HEALTH STOCKS
S&P 500 futures are currently trading at 3009.98- higher by 0.09% as compared to the previous close. The index
Futures, however, closed in negative territory in the last trading session.
The benchmark index retreated from an all-time high today as traders checked their optimism about renewed Sino-U.S. trade negotiations.
In the cash markets, the benchmark index inched up 0.54% to 3,016.98 due to gains in mineral and health-care stocks.
U.S. equities today pared their earlier gains after news that known China hawk and Trump advisor Michael Pillsbury warned that Washington is ready to escalate the trade war if a deal is not reached soon.
Meanwhile, deputy trade negotiators from both the U.S. and China resumed face-to-face talks today at the U.S. Trade Representative’s office near the white house. The trade talks on Thursday and Friday are aimed at laying the groundwork for high-level talks in the next month.
Index component Microsoft rose 1.82% after announcing on Wednesday that it authorized another $40 billion for share buybacks. The software giant also said that it will increase its quarterly dividend by 5 cents to 51 cents a share.
The U.S. Federal Reserve slashed the benchmark short-term fed funds rate by 25 basis points to the target range of 1.75%-2.00% on Wednesday. It was the second Fed rate cut of 2019.
The broad-market index was around 0.4% away from its all-time high. The benchmark index recorded 22 new 52-week highs and 1 new low.
Other top gainers in the S&P 500 include Cigna Corp (up 3.1%), Oracle (up 1.9%), and Humana (up 1.9%) at the time of writing.
On the economic front, Existing Home Sales for August released earlier today came in at 5.49M. Sales figure was above the market expectation of 5.37M. In addition, Initial Jobless Claims released earlier today rose to 208K in the week ended 14th September from 206K in the week prior. Claims figure was below the consensus estimates of 213K.
On the technical front, the RSI is currently at 61.53% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger bands and is heading upwards.
Overall Bias is Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Buy At 3007, Take Profit At 3019 Stop Loss At 3001