Bears putting up a decent fight! Bulls still staying strong!
The S&P 500 index traded lower during Friday’s session as a slight pullback in Treasury yields and oil prices weighed down on Financials and Energy sectors, overshadowing gains in Industrial and Health-care sectors. Conflicting news headlines around U.S. – China trade talks further weighed down on investor sentiments. Holding on to the 2,710 support level (at 100 DMA) for the third day in a row and bouncing off it after reaching the day’s low at 2,709.18, the index ended a choppy week at 2,712.97 down 7.16%, losing 0.26% and with a weekly loss of 0.54%.
Disappointing earnings guidance reported by Campbell Soup Co.,
Nordstrom Inc. and Applied Materials Inc. at the tail-end of this earnings
season weighed down on Semiconductors and Consumer Discretionary sectors as
they continue to remain under pressure due to rising input costs. The
agricultural and construction equipment maker, Deere & Co. gained 5.75%
after reporting an expected growth of 35% in equipment sales for the third
quarter, lifting the broader Industrials sector by 0.55% to be the best
performer in the index.
Energy stocks shed gains (losing 0.81%)
as oil retreated after reaching the $80 price mark for the first time since
November 2014. Financial stocks also shed some of their last week’s gains as
the 10-year Treasury yields inched lower to settle at 3.059% after reaching the
seven-year high of 3.11% in Thursday trading session.
Chinese officials denied Thursday’s
news reported by several news outlets that China has offered to reduce its
trade deficit with the U.S. by up to $200 billion. Meanwhile, Congress
officials planned to push forward a bill that could block deals between
American and Chinese companies that pose a risk to national security. Gains in
the equity markets remained capped as investors dealt with the conflicting news
headlines around latest developments in the U.S. – China trade talks.
S&P 500 Outlook for MON, 05/21
S&P 500 Outlook for MON, 05/21
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