S&P 500 Set to Open Higher, Amid Bumper Earnings, Data – Outlook Strong

U.S. stock futures pointed to a positive open, setting the Dow on course for its fifth up day in a row, as the equity market keeps rebounding from its tumble earlier this month.

Dow futures were up nearly 290 points, or 1.2%, while S&P 500 futures rose 22 points or 0.8%. Nasdaq composite futures added 50 points or roughly 0.8%.

Ahead of the Wall Street open Wednesday, U.S. futures reversed gains to trade sharply down, after inflation data came in above market estimates. The consumer price index rose 0.5 percent in January, beating forecasts of a 0.3 percent increase — triggering a sharp reaction from domestic markets and from overseas.

On the data front Thursday, jobless claims, price producer index (PPI) data, the Empire State manufacturing survey and Philadelphia Fed Manufacturing Business Outlook Survey are all scheduled to be released at 8:30 a.m. ET.

After that, industrial production is due out at 9:15 a.m. ET, followed by the NAHB/Wells Fargo Housing Market Index at 10 a.m. ET. The Treasury International Capital (TIC) data will then come in at 4 p.m. ET.

On the technical charts, S&P 500 is trading in the positive zone and is testing the 200 day EMA. The market is trading above the 9 day, 20 day, 50 day and 100 day moving averages. The RSI is at 48.77 and the MACD is below the signal line, but ready to make a positive crossover above the signal line.

Trade suggestion:

Buy stop at 2719, take profit at 2749, Stop loss at 2695

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