S&P 500 STABLE DESPITE TECH SELLOFF, PAYROLLS OUTPERFORM
S&P 500 futures are currently trading at 2731.5- higher by 0.01% as compared to the previous close. The index futures have been continuously closing in the green since the last three trading sessions. The benchmark gained today, led by the energy and consumer discretionary sectors.
US equities traded mostly higher on Friday following the release of better-than-expected employment data and renewed optimism on trade, but sharp losses in Apple capped gains.
Index-member Apple’s steep drop (down 5.9%) also dragged down shares of other tech-related companies in the benchmark like Facebook, Netflix, and Alphabet. Apple plunged after the company’s iPhone shipments for the last quarter missed market expectations. The company has also offered light guidance and announced major changes to its reporting structure.
The sentiment was initially lifted after Bloomberg reported earlier today that the US President has asked officials in his administration to start drafting the terms of a possible trade deal with China. But a White House official told CNBC later today that Bloomberg’s report was not true, noting: “There is a long way to go” on these negotiations. To be sure, the conflicting reports, both coming just days before the midterm elections, suggest no final decision either way.
Top gainers in the S&P 500 include VeriSign (up 22.41%), Newell Brands (up 14.62%), Starbucks (up 11.85%) and Symantec (up 6.25%) at the time of writing.
The U.S. economy has added 250K jobs in October, according to data released by the Labor Department earlier today. The markets had expected an addition of 190K jobs for the month. In addition, Average Hourly Earnings also out today rose 3.1% on an annualized basis in October for the first time since the recession. The Unemployment rate for October also released earlier came in at 3.7%. The Unemployment rate was in line with market expectations.
On the technical front, the RSI is currently at 42.93% and suggests that the market can continue trading sideways. The current price is above the MA5. The %K has crossed the %D from below to the upside at around 12% and suggests that the market may head upwards.
Overall Bias is Mixed/Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Buy At 2720, Take Profit At 2740 Stop Loss At 2710