S&P 500 WOBBLY ON GDP AND EARNINGS
S&P 500 futures are currently trading at 2794- lower by 0.09% as compared to the previous close. The index futures, however, closed in positive territory in the last trading session.
In the cash markets, the benchmark index was slightly higher at 2793.06 at the time of writing. U.S. Stocks fell today as stronger-than-expected economic data were offset by talks between U.S. President Donald Trump and North Korean leader Kim Jong Un falling through.
Summit between President Donald Trump and North Korean leader Kim Jong Un ended abruptly after both sides failed to agree on steps toward North Korea taking down its nuclear armament.
Meanwhile, on Wednesday, U.S. Trade Representative Robert Lighthizer said the U.S. would abandon—for now—its threat to raise tariffs to 25% on $200 billion of Chinese goods on 2nd March.
Stocks of Index-member HP Inc. plunged 15.7% after the company posted quarterly revenue that missed market expectations. The company also reported earnings per share that matched the consensus estimates.
L Brands stock was down 7.8%, after the parent company of Victoria’s Secret announced Wednesday evening fourth-quarter earnings that fell short of expectations.
Celgene Corp. fell 7.9% after Bristol-Myers Squibb’s largest shareholder announced its opposition to Bristol’s planned takeover of Celgene.
Among top gainers in the index, Monster Beverage climbed 9.9%, Southwest Airlines rose 4.16% and Nielsen added 3.94% at the time of writing.
The broad-market index is set to record its third straight day of losses, after being boosted in the recent weeks by optimism around trade and dovish signals from the Federal Reserve. The index is about 5% away from its September record closing high.
On the economic front, the preliminary reading of the GDP for the fourth quarter was released earlier today. The QoQ rate of change in the GDP was +2.6%. The GDP change was in line with the market expectations. In addition, Chicago PMI for February also out today came in at 64.7. The PMI reading was above the consensus estimates of 58.1.
On the technical front, the RSI is currently at 65.03% and suggests that the market can continue trading sideways. 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 2792, Take Profit At 2807 Stop Loss At 2784