S&P 500 WOBBLY ON TRADE TALKS AND RETAIL SALES
S&P 500 futures are currently trading at 2752.25- higher by 0.09% as compared to the previous close. The index futures, however, closed in negative territory in the last trading session.
In the cash markets, the S&P 500 edged up 0.041%. The broad-market index came into Thursday’s session riding four-day winning streaks. U.S equities fell earlier in the session on the release of much weaker-than-expected retail sales data as well as lingering uncertainty around U.S.-China trade talks.
The South China Morning Post reported on Wednesday that China’s President Xi Jinping will meet with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer on Friday. Bloomberg News reported, however, that the two sides are still far apart on key issues. According to market sources, the U.S. President is considering pushing back the deadline for the imposition of higher tariffs on Chinese imports by 60 days.
Meanwhile, President Trump was set to sign border-security legislation, which would avert a partial government shutdown.
Index-member Coca-Cola shares fell more than 7% after the beverage giant reported results ahead of the opening bell on Thursday that indicated the company falling short of fourth-quarter revenue expectations.
Shares of NetApp Inc. plunged 6.8% after the cloud data services company issued a fiscal third-quarter earnings report that showed the company falling short of revenue expectations.
On the other hand, Cisco Systems Inc. rose 3.23% after earnings and the network giant’s outlook topped Wall Street expectations. The stock was up 3.8% Thursday morning, putting the company on pace to open at its highest level since December 2000.
On the economic front, Retail Sales (MoM) for December released earlier today came in at -1.2%. It was the biggest monthly drop in sales since September 2009, according to the Commerce Department. The department also said retail sales fell 0.9% in December when excluding gasoline station sales.
On the technical front, the RSI is currently at 67.95% 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 74% and suggests that the market may head 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 2747, Take Profit At 2762 Stop Loss At 2740