S&P 500 RISES AFTER CHINA TRADE COMMENTS; GDP MEETS EXPECTATIONS
S&P 500 futures are currently trading at 2928-higher by 1.57% as compared to the previous close. The index futures closed in positive territory in the last trading session also.
In the cash markets, the benchmark index added 1.38% to 2,927.86 at the time of writing.
U.S. equities rose today after China said it wished to resolve its trade war with the U.S. with a calm attitude.
The Chinese commerce ministry said today that it opposed increasing trade tensions, hinting that China’s authorities will not retaliate against the latest round of U.S. tariffs. The Chinese commerce ministry also said that both countries are discussing the next round of trade talks scheduled in the next month and hoped Washington could cancel the planned additional tariffs to avoid an escalation.
The U.S. President said in an interview that trade talks were scheduled for Thursday at a different level. President Trump, however, did not provide further details.
Trade bellwethers Caterpillar and Boeing gained 2.4% and 0.81% respectively at the time of writing.
Stocks of Dollar General surged 11.26% after the company reported quarterly revenue and earnings that exceeded market expectations.
On the other hand, stocks of Best Buy plunged 8.5% after the company reported second-quarter revenue that missed market expectations.
The benchmark index recorded 21 new 52-week highs and no new low. The broad-market index had lost about 3% in this month entering today’s session.
On the economic front, the second estimate of the US GDP for the second quarter was released on Thursday. The QoQ rate of change in the GDP was +2.0%. The GDP growth was in line with market expectations. In addition, Initial Jobless Claims released earlier today rose to 215K in the week ended 24th August from 211K in the week prior. Claims figure was also in line with market expectations.
On the technical front, the RSI is currently at 52.79% 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 2922, Take Profit At 2939 Stop Loss At 2913