S&P 500 IS ON TRACK FOR WORST DAY SINCE JANUARY; PMI DISAPPOINTS
S&P 500 futures are currently trading at 2816- lower by 1.55% 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 fell 1.51% to 2811.87 at the time of writing. Bank stocks led the decline in the index after the so-called yield curve inverted. The broad-market index was on track for its worst day since 3rd January.
U.S. equities fell today as jitters over the global economy were sparked by disappointing manufacturing data out of Europe and the Federal Reserve’s cautious outlook on the U.S. economy.
In the U.S., the spread between the 3-month Treasury bill yield and the 10-year note rate turned negative for the first time since 2007 — thus inverting the so-called yield curve. An inverted yield curve happens when short- term rates surpass their longer-term counterparts. This is considered an indicator of a recession coming in the near future.
On the U.S.-China trade front, a U.S. trade delegation led by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will visit China on March 28-29. This will be followed by a trip by Chinese Vice Premier Liu He to Washington in April.
Index-member Nike stocks fell 4.61% on the back of weak quarterly sales growth in North America.
Boeing shares fell 1.75% after Indonesian airline Garuda canceled a $6 billion order for 49 Boeing 737 Max jets.
On the other hand, shares of Tiffany & Co. rose 2.9%, after the luxury jewelry retailer reported fiscal-fourth quarter profits that beat market expectations, but missed forecasts for same-store sales growth.
The benchmark index hit five-month high on Thursday.
Official data released earlier today showed growth in the U.S. manufacturing sector slowed to a 21-month low in March. The preliminary reading of the Manufacturing PMI for March released today came in at 52.5. The PMI reading was below the market expectation of 53.5.
In addition, Existing Home Sales for February also released earlier today came in at 5.51M. Sales figure was above the market expectation of 5.10M.
On the technical front, the RSI is currently at 55.06% 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 2820, Take Profit At 2800 Stop Loss At 2830