S&P 500 EDGES UP ON TRADE OPTIMISM AND GOODS ORDERS
S&P 500 futures are currently trading at 2923.75- higher by 0.04% as compared to the previous close. The index Futures, however, closed in negative territory in the last trading session.
In the cash markets, the benchmark index edged up 0.097% to 2,920.22 led by gains in tech and energy sectors.
U.S. equities advanced today as comments from Treasury Secretary Steven Mnuchin increased expectations of a potential trade deal between Washington and Beijing. Stocks, however, registered their worst day of June on Tuesday after the Federal Reserve chairman said the bank is assessing whether the U.S. economy is calling for lower interest rates.
U.S. Treasury Secretary Steven Mnuchin said earlier today that the trade deal between the U.S. and China is “about 90%” complete. Treasury Secretary Steven Mnuchin also said that US President Donald Trump and his Chinese counterpart Xi Jinping can make progress in stalled trade talks at the G-20 summit later this week.
According to market sources, the U.S. was willing to remove tariffs on $300 billion worth of Chinese goods as the two sides resume trade talks.
Tech stocks gained 1.60%, while the trade-sensitive industrial index was up 0.47% at the time of writing.
Tech and semiconductor stocks rose led by gains in Micron Technology. The memory and Storage Company’s stocks surged 12.76% after it reported earnings for the fiscal third quarter that beat the market expectation. The VanEck Vectors Semiconductor ETF gained 3.3%. Stocks of Nvidia and Advanced Micro Devices also advanced more than 3%.
The energy sector rose 2.1% as crude prices gained. Oil prices advanced today after industry data indicated that U.S. crude stockpiles fell more than expected and also supported by an outage at a major refinery on the U.S. East coast.
Among the S&P 500 major sectors, the healthcare sector fell 1%, dragged lower by losses in Pfizer, Merck & Co and Johnson &Johnson.
General Mills was the top loser on the index falling 4.11% after the company missed quarterly sales estimates.
The benchmark index recorded 6 new 52-week highs and 3 new lows. The broad-market index touched a record high last week. The index has gained about 6% for this month entering Wednesday’s session.
On the economic front, Core Durable Goods Orders (MoM) for May released earlier today came in at 0.3%. Orders were above the market expectation of 0.1%.
On the technical front, the RSI is currently at 57.6% and suggests that the market can continue trading sideways. The current price is above the MA20. 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 2920, Take Profit At 2932 Stop Loss At 2914