S&P 500 INCHES UP DESPITE WEAK JOBS REPORT
S&P 500 futures are currently trading at 2982.75- higher by 0.43% as compared to the previous close. The index Futures were closing in positive territory since the last three trading sessions.
In the cash markets, the benchmark index inched up 0.22% to 2,982.88 at the time of writing.
U.S. equities rose today despite the release of weaker-than-expected jobs data. The yield on the 10-year Treasury note dipped from their session highs on the weak jobs report.
The Federal Reserve’s interest rate decision is scheduled to be released on the 18th of September. According to CME Group’s FedWatch tool, market expectations for a 25 basis-point rate cut are at 91.2%.
The Chinese Ministry of Commerce said on Thursday that officials from both sides will hold another round of trade negotiations in Washington, D.C., towards the beginning of October. The Chinese ministry also stated that consultations will be made in mid-September for the meeting.
Index-member Bank of America fell 1.26% after investment bank KBW downgraded the company’s stock citing earnings pressure from expected further interest rate cuts by the U.S. central bank.
A fall in oil prices also pressured energy stocks which dropped 0.25%, leading losses on the Index. The communication sector was the biggest drag among 11 major index’s sectors pulled lower by Facebook.
Shares were, however, headed for solid weekly gains after the two economic powerhouses agreed to hold high-level talks in the next month. The S&P 500 had gained 1.6% week to date.
The benchmark index recorded 42 new 52-week highs and no new lows.
On the economic front, Nonfarm Payrolls for August released earlier today came in at 130K. Payrolls were below the market expectation of 160K. August marked the third consecutive month in which job creation in the U.S. slowed.
On the technical front, the RSI is currently at 60.59% 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 2977, Take Profit At 2993 Stop Loss At 2969