S&P 500 WOBBLY ON GDP AND TRADE TALKS
S&P 500 futures are currently trading at 2813.75- higher by 0.23% as compared to the previous close. The index futures, however, closed in negative territory in the last trading session.
In the cash markets, the benchmark index inched up 0.03% to 2806.33 at the time of writing. U.S. equities rose slightly today as trade talks between the U.S. and China resumed while concerns that the economy may be slowing down persisted.
Reuters reported overnight that Chinese officials made unprecedented offers regarding force technology transfers as well as other major sticking points. The report comes as U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin arrived in Beijing for further trade negotiations today.
In the U.S., 10-year Treasury note hit its lowest level since December, 2017. This comes after the same bond fell below its three-month counterpart last week — a phenomenon called as inverted yield curve. This is considered an indicator of a recession coming in the near future.
The move lower in Treasury yields pressured the major U.S. stock indices. The S&P 500 closed in the negative territory for the third time in four days.
Index-member Accenture stocks surged 4.75%, after the management consulting firm reported fiscal second-quarter profit and revenue that exceeded market expectations, while raising its outlook for 2019.
PVH Corp. stocks skyrocketed 15% after the Calvin Klein and Tommy Hilfiger parent company reported fourth-quarter earnings on Wednesday that surpassed the consensus estimates.
On the other hand, stocks of Nielsen Holdings plunged 10.44% after the New York Post reported on Wednesday that Blackstone Group is backing out of a potential deal to take the company private. The report also disclosed that private-equity firm Apollo Global Management “is also losing interest,” in a potential buyout.
On the economic front, the final reading of the GDP for the fourth quarter was released earlier today. The QoQ rate of change in the GDP was +2.2%. The GDP growth was below the market expectations of 2.2%.
In addition, Pending Home Sales (MoM) for February also released earlier today came in at -1.0%. Sales change was below the market expectation of a growth of 0.1%.
On the technical front, the RSI is currently at 53.73% and suggests that the market can move in the upward direction. The current price is below 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 2808, Take Profit At 2828 Stop Loss At 2798