S&P 500 declines as energy pressures retailers and Home Depot falls.
The S&P 500 declined on Tuesday as a dip in the oil sector and a decline in retailers led by Home Depot because of disappointing quarterly results weighed on stocks.
The S&P 500 was down 0.3%.
Home Depot Inc. had a more than 1% decline following the release of quarterly sales that fell short of Wall Street projections due to a decline in lumber prices and a worse spring season.
Wedbush wrote in a note that “we view these results negatively, and see an incremental negative read-through to Lowe’s and other home-oriented retailers,” as the overall retail sector dropped more than 1% on the day.
Data revealing that U.S. retail sales missed estimates in April, a sign of fading consumer power, also dampened sentiment towards merchants.
Retail sales were “constrained by weakness in petrol station sales, which was unexpected given the increase in pump prices during the month,” according to Jefferies.
As weaker-than-expected Chinese economic statistics eclipsed hopes for an increase in energy demand, energy was the largest drag on the overall market.
The International Energy Agency increased its estimate of the world’s daily oil consumption by 200,000 barrels, to a record 102 million.
S&P 500 TECHNICAL ANALYSIS DAILY CHART:
S&P 500 is currently trading in up channel.
S&P 500 is currently trading below 5&20 SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting no trend.
Immediate resistance is at 4148.41 & its immediate support level is 4126.28
HOW TO TRADE S&P 500 IN THIS WEEK
After making a big move, the S&P 500 is now trading sideways. The market is currently at a support zone that has already been challenged several times; if this support zone is broken, we can anticipate a fall to the next support zone.
