S&P 500 RISES ABOVE MA5 ON STRONG CORPORATE EARNINGS
S&P 500 futures are currently trading at 2667.50- higher by 1.14% as compared to the previous close. The index futures closed in positive territory in the last trading session also.
U.S. stocks rose midday Friday, as investors shook off downbeat results from Intel and focused on a broadly positive picture painted by earnings season so far. Equities neared their highs of the day on early indications that President Trump might announce an agreement on Friday afternoon to reopen the government on a temporary basis. Additionally, speculation that the Federal Reserve may end its balance sheet, unwind sooner than expected also added to the bullish tone.
Treasury Secretary Steven Mnuchin also projected confidence about the status of trade negotiations between the U.S. and China in comments to Reuters. Treasury Secretary Mnuchin said both sides were “making a lot of progress” in the talks.
Starbucks stock gained 2.73% as the company reported strong sales and earnings growth for its first quarter report. Western Digital Corp. rallied 5.5% after the company’s management said it expected revenue to rise in the second half of 2019.
Other top gainers in the index include- Micron Technology (up 6.5%), Seagate (up 6.4%), American Airlines (up 4.8%) and Autodesk (up 4.3%).
On the other hand, Index-member Intel fell 5.18% after missing revenue estimates. The company also gave weak guidance for first quarter of 2019.
On the technical front, the RSI is currently at 62.93% and suggests that the market can move in the upward direction. The current price is above the MA5 (2640.40). 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 2660, Take Profit At 2690 Stop Loss At 2645