S&P 500 INCHES DOWN AS INVESTORS EYE EARNINGS; PPI OUTPERFORMS
S&P 500 futures are currently trading at 2889.25- lower by 0.23% 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 inched down 0.17% to 2883.21 at the time of writing. U.S. equities rose earlier today as investors cheered progress on U.S.-China trade talks.
The Wall Street Journal reported that China agreed to open its cloud-computing sector to foreign companies in an attempt to reach a deal with the U.S. This follows Treasury Secretary Steven Mnuchin saying on Wednesday that the U.S. and China have pretty much agreed on an enforcement mechanism for when a deal is struck.
Bank stocks rose broadly as the earnings season was set to start. J.P. Morgan Chase which will report its earnings on Friday added 0.77% at the time of writing. Morgan Stanley and Citigroup also rose more than 0.50% at the time of writing.
International Business Machines Inc. stocks gained 0.2% after Credit Suisse initiated coverage of the company with a $173 price target and an outperform rating.
On the other hand, stocks of Chipotle Mexican Grill shares fell 1.5% after Jefferies downgraded them, citing a full valuation and a run-up that reflects improved visibility for margin drivers.
Other top losers in the index include UnitedHealth Group (fell 4.7%), eBay(fell 4.4%) and Anthem Inc. (fell 4.1%) at the time of writing.
On the economic front, Initial Jobless Claims released earlier today fell 6,000 to a seasonally adjusted 196,000 for the week ended April 6. It was their lowest level in fifty years, the Labor Department disclosed on Thursday. Also, Claims number for the prior week was revised to show 2,000 more applications received than previously reported.
In addition, PPI (MoM) for March also out today came in at 0.6%. The PPI growth was above the market expectation of 0.3%.
On the technical front, the RSI is currently at 63.77% 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 2893, Take Profit At 2883 Stop Loss At 2898