S&P 500 INCHES UP ON CHIP RALLY; HOME SALES DISSAPOINT
S&P 500 futures are currently trading at 3012.75- higher by 0.34% as compared to the previous close. The index Futures have been closing in positive territory since the last two trading sessions.
In the cash markets, the broad market index hovered near record levels today as semiconductor shares rose on reassuring comments from Texas instruments on global chip demand.
U.S. equities dropped earlier in the session due to weaker-than-expected quarterly results from Caterpillar and Boeing, while trade tensions and regulatory fears around Big Tech also weighed on investor sentiment.
Stocks closed higher in the previous session after news that a U.S. delegation will head to China for trade negotiations next week.
Stocks of Boeing fell 2.6% today after the company reported weaker-than-expected earnings and revenue for the previous quarter.
Caterpillar stocks plunged 4.4% after the company reported quarterly earnings that were below market expectations and issued guidance that was much weaker than expected.
The stock prices of Apple, Amazon, and Facebook have dropped after the US Department of Justice announced an antitrust investigation into online platforms.
On the other hand, stocks of Texas instruments surged more than 7% to an all-time high after the company beat estimates for its second-quarter results.
AT&T rose 2.96% after the telecom giant reported net phone subscriber growth that topped the consensus estimates.
According to market sources, so far about 25% of S&P 500 companies have reported their quarterly earnings. Of those, 78% have reported strong quarterly results.
The benchmark index recorded 29 new 52-week highs and no new low. Index members Ford Motor, Facebook and PayPal are scheduled to report their earnings today after the market close.
On the economic front, New Home Sales for June released earlier today came in at 646K. Sales were below the market expectation of 660K.
On the technical front, the RSI is currently at 60.27% 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 3012, Take Profit At 3022 Stop Loss At 3007