S&P 500 WOBBLY ON WEAK HOUSING DATA AND TRADE NEWS
S&P 500 futures are currently trading at 2807- lower by 0.31% as compared to the previous close. The index futures, however, closed in the positive territory in the last trading session.
In the cash markets, the benchmark index edged down 0.03% to 2810.07 at the time of writing. U.S. equities were little changed today after weaker-than-expected housing data, while investors also fretted over U.S.-China trade negotiations.
Bloomberg News reported earlier today that China and the U.S. are trying to push back a meeting between countries’ two leaders from late March to April at the earliest. This comes after U.S. President Donald Trump said he was in no rush to form an agreement.
Index-member Facebook was among the top losers, falling 1.5% after a worldwide outage of its core app, Instagram and WhatsApp. Facebook’s stock was also under pressure after The New York Times reported federal prosecutors are conducting a criminal investigation into data deals the company made with other tech giants.
Stocks of Dollar General Corp fell 7.91%, after the discount retailer reported a fiscal fourth-quarter profit that missed expectations and provided a downbeat earnings and sales outlook.
Boeing stocks fell 0.59% after President Trump told reporters on Wednesday that U.S. regulators grounded 737 Max 8 and 9 aircraft in line with similar decisions in other countries.
On the other hand, Apple stocks rose 1.12% after Cowen initiated coverage of the company with an outperform rating and a $220 price target. Cowen cited potential long-term upside from Apple’s services business.
General Electric rose 3.29% after the company issued weaker-than-expected earnings guidance for 2019.
The index’s tech sector rallied more than 3% through Wednesday’s close. It also became the best-performing sector year to date.
On the economic front, New Home Sales (MoM) for January released earlier today came in at -6.9%. Home Sales were below the market expectation. In addition, Initial Jobless Claims also out today rose by 6,000 to 229,000 during the week ended 9th March. Jobless Claims were above the consensus estimates of 225K.
On the technical front, the RSI is currently at 60.89% and suggests that the market can move in the downward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger bands and is heading 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 2810, Take Profit At 2795 Stop Loss At 2818