S&P 500 WOBBLY ON TRADE TALKS AND JOBLESS CLAIMS
S&P 500 futures are currently trading at 2877.50- lower by 0.10% as compared to the previous close. The index futures closed in negative territory in the last trading session also.
In the cash markets, the benchmark index edged down 0.032% to 2872.47 at the time of writing. U.S. equities were trading fractionally lower today as investors awaited for more news on a potential trade deal between the U.S. and China.
High-level trade negotiations between the world’s two largest economies resumed on Wednesday in Washington with U.S. President Donald Trump scheduled to meet with Chinese Vice Premier Liu He today at 2030 GMT stateside.
Meanwhile, Bloomberg reported earlier today that the U.S. wanted to set a 2025 target for China to meet trade pledges. The plan would see China committing to buy more U.S. commodities, and allow full foreign ownership for U.S. companies operating in China as a binding pledge.
Index-member Boeing gained 2.43% despite Ethiopia saying the company must review the controllability of its 737 Max 8 jet. This comes after an Ethiopian Airlines flight operated with a 737 Max 8 crashed in March.
Facebook stocks was up 1.96% after advisory firm, Guggenheim upgraded the company’s stock to buy from neutral, citing stable user trends and investors feeling more comfortable with the social media company’s privacy issues.
Stocks of Constellation Brands rose 3.48%, after the distributor of Corona beer and Robert Mondavi wines beat the market expectation for its fiscal fourth quarter earnings.
New York Fed President John Williams said in a Conference earlier today that with the economy running close to Fed’s dual mandate goals, monetary policy is in the right place. President Williams also said that changes in long-run economic fundamentals, like lower growth potential and projected inflation means that interest rates are likely to be lower for longer than in the 1990s.
The broad-market index is up more than 14% year to date, with technology stocks leading the gains.
On the economic front, Initial Jobless Claims released earlier today fell 10,000 to a seasonally adjusted 202,000 for the week ended March 30. It was their lowest level since early December 1969, the Labor Department disclosed on Thursday. Also, Claims number for the prior week was revised to show 1,000 more applications received than previously reported.
On the technical front, the RSI is currently at 65.7% and suggests that the market can move in the downward direction. The current price is above the MA5. The %K has crossed %D from above to the downside at around 91% and suggests that the market may head downwards.
Overall Bias is Negative and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Sell At 2881, Take Profit At 2871 Stop Loss At 2886