S&P 500 RISES ON UPBEAT EARNINGS REPORTS, ROBUST ECONOMIC DATA
S&P 500 futures are currently trading at 2887.75- higher by 1.13% 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 rose by 1.18% to 2,884.73 at the time of writing. U.S. equities rose today as sentiment was lifted by better-than-expected earnings from Cisco Systems and Walmart.
Stocks of Walmart rose 1.89% after the company reported first-quarter earnings that surpassed market expectations.
Cisco Systems surged 7.41%, the most among the S&P 500 after it reported better-than-expected third quarter earnings after the market close on Wednesday. The company also issued better-than-expected revenue guidance.
Stocks of Banks gained as the benchmark 10-year Treasury yield rose above 2.4% on robust economic data. Bank of America, Citigroup, and Goldman Sachs all rose more than 1.3% at the time of writing.
All the major S&P 500 sectors were trading in positive territory, with nine of them rising more than 1%. The benchmark index now stands at around 2% shy of its all-time high that it reached two weeks ago.
The broad-market index recorded 50 new 52-week highs and no new low.
On the economic front, Housing Starts for April released earlier today came in at 1.235M. Housing Starts were above the market expectation of 1.205M. Also, Starts number for the prior month was revised to 1.168M from 1.139M reported earlier.
In addition, Initial Jobless Claims also out today came in at 212K in the week ended 11th May. Claims figure was below the consensus estimates of 220K.
On the technical front, the RSI is currently at 50.44% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is below the middle line of the Bollinger bands but 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 2883, Take Profit At 2903 Stop Loss At 2873