S&P 500 INCHES UP AS RATE CUT BETS OFFSET TRADE CONCERNS
S&P 500 futures are currently trading at 2836- higher by 0.27% as compared to the previous close. The index Futures have been closing in positive territory since the last three trading sessions.
In the cash markets, the benchmark index inched up 0.28% to 2,834.05 as the time of writing. On Wednesday, the S&P 500 gained 0.8%.
U.S. equities gained today adding to a two-day rally on expectations of looser monetary policy from the central bank. The broad-market index recorded the second best day of the year on Tuesday. For the week, the S&P 500 is up around 2.9%.
U.S. President Donald Trump escalated tensions with China today by saying that tariffs on China’s goods could be raised by another $300 billion if necessary. President Trump also said that he would make a decision on China tariffs after the G20 summit.
Meanwhile, Officials from the U.S. and Mexico will resume trade talks later today. U.S. Vice President Mike Pence said earlier today that talks were positive but President Trump’s administration wants Mexico to commit to working harder to combat illegal immigration.
Stocks of Advanced Micro Devices jumped 7.18% after Morgan Stanley upgraded the stock to equal weight from underweight.
Energy stocks were the best performers in the index, gaining 1.03% on the day as oil prices rose. Baker Hughes and Occidental Petroleum added around 3% and 2% respectively at the time of writing.
On the other hand, stocks of J.M. Smucker inched down 0.51% after it fell short of revenue targets for the fiscal fourth quarter.
The benchmark index recorded 65 new 52-week highs and 2 new lows.
On the economic front, Initial Jobless Claims released earlier today rose to 218K in the week ended 1st June from 215K in the week prior. Claims figure was also above the consensus estimates of 215K. In addition, Nonfarm Productivity (QoQ) for the first quarter also released earlier today came in at 3.4% down from the prior estimate of 3.6%. Productivity growth was also below the market expectation of 3.5%.
On the technical front, the RSI is currently at 51.68% 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 2831, Take Profit At 2845 Stop Loss At 2824