S&P 500 EDGES UP ON UPBEAT EARNINGS REPORTS AND RATE CUT HOPES
S&P 500 futures are currently trading at 2995-lower by 0.28% as compared to the previous close. The index Futures, however, closed in positive territory in the last trading session.
In the cash markets, the benchmark index edged up 0.019% to 2,995.69 at the time of writing.
U.S. equities gained earlier in the session as investors cheered a better-than-expected quarterly report from Microsoft, which lifted its share to a record high.
Stocks posted small gains on Thursday after New York Federal Reserve President John Williams said that policymakers needed to act quickly when the economy was slowing and rates were low.
The comment led investors to price in a greater possibility that the central bank would slash interest rates by 50 basis points at its meeting on July 30-31.
Microsoft’s stock touched an all-time high today after it reported a better-than-expected fourth-quarter profit on Thursday, thanks to continued sales increases from its cloud business.
Stocks of Boeing surged 4.53% after it said that it would take a $4.9 billion after-tax hit due to estimated disruptions from the grounding of its 737 MAX.
Stocks of Kansas City Southern gained 3.25% after the company reported better-than-expected quarterly earnings.
On the other hand, American Express slipped 2.66% despite topping profit estimates. Stocks of the credit card issuer fell due to the rise in its expenses.
According to market sources, so far more than 15% of S&P 500 companies have reported their quarterly earnings. Of those, 79% have reported strong quarterly results.
The benchmark index recorded 44 new 52-week highs and 3 new lows.
On the economic front, the preliminary reading of Michigan Consumer Sentiment for July released earlier today came in at 98.4. The index reading was below the market expectation of 98.6.
On the technical front, the RSI is currently at 57.55% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is above the middle line of the Bollinger bands but is heading downwards.
Overall Bias is Negative and short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Sell At 2998, Take Profit At 2986 Stop Loss At 3004