S&P 500 INCHES UP AS OIL PRICES SPIKE; JOBLESS CLAIMS RISE
S&P 500 futures are currently trading at 2888.75- higher by 0.26% 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 inched up 0.30%, led by gains in consumer discretionary and energy sectors. The S&P 500 posted small losses in each of the last two trading sessions.
Meanwhile, White House’s top economic advisor Larry Kudlow said earlier today that the economic burden of a trade dispute between the two economic powerhouses will shift to China, rather than the U.S.
Energy stocks were the best performers in the index, gaining 1.18% on the day as oil prices rose. Baker Hughes and Occidental Petroleum added 1.73% and 1.93% respectively at the time of writing.
The biggest boost to the index was provided by the communication sector, which gained 1%.
Stocks of Disney rose after Morgan Stanley raised its price target on the company’s stocks to $160 from $135. The investment bank hiked its price target citing stronger estimates for the company’s key Disney plus direct-to-consumer service.
Target Corp. stocks were trading slightly higher today after it announced that it was hiking its quarterly dividend by 3.1%, to 66 cents per share from 64 cents.
On the other hand, stocks of Twitter declined 3.71% after brokerage Moffett Nathanson said it expects the company’s costs to rise and revenue growth to slow.
The S&P 500 is up more than 4% for the current month. The benchmark index recorded 27 new 52-week highs and 1 new low.
On the economic front, Initial Jobless Claims released earlier today rose to 222K in the week ended 8th June from 219K in the week prior. Claims figure was also above the consensus estimates of 216K. In addition, the Export Price Index (MoM) for May also released earlier today came in at -0.2%. The index change was below the market expectation of a fall of 0.1%.
On the technical front, the RSI is currently at 59.18% 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 2887, Take Profit At 2901 Stop Loss At 2880