S&P 500
THE GIST (The "What"):
THE GIST (The "What"):
The index rebounded after reaching the day’s low at 2707.38, erasing some of day’s losses and registering the day’s high at 2731.97 as investors digested these latest developments and as Industrials and Defensive stocks gained. With 7 out of
11 primary sectors ending the day lower, the index closed the session off lows at 2727.76, losing 0.20% (down 5.53 points).
THE DETAILS (The "How & Why"):
Please check the outlook and forecast for tomorrow, Fri 5/25 below:
The S&P 500 index continues to be range bound between the 2700 and 2745 band, successfully testing the strong support level of its 100 DMA found at 2710 several times this month. Stocks were sent tumbling at the opening after President Trump called off his summit with North Korean leader Kim Jong Un which was due to take place on June 12. Several other news headlines also played in the background weighing down on the market sentiment during the early trading session.
THE DETAILS (The "How & Why"):
Please check the outlook and forecast for tomorrow, Fri 5/25 below:
The S&P 500 index continues to be range bound between the 2700 and 2745 band, successfully testing the strong support level of its 100 DMA found at 2710 several times this month. Stocks were sent tumbling at the opening after President Trump called off his summit with North Korean leader Kim Jong Un which was due to take place on June 12. Several other news headlines also played in the background weighing down on the market sentiment during the early trading session.
Defensive stocks benefited from the latest developments in geopolitical and trade tensions, led by a rally in Raytheon Company. Industrial stocks also recovered from the sell-off experienced post the trade truce news between U.S and China gaining 0.60%. Meanwhile, global automakers stocks such as Volkswagen AG, Daimler AG and BMW AG fell after President Trump announced his decision to launch a national security investigation on cars imported into the U.S. in an attempt to renegotiate the NAFTA agreement. U.S. automakers such as Ford Motor Co. and General Motors, however, gained over this latest development.
Oil prices fell for the third straight day weighing down on the Energy sector and making it the biggest drag on the index, losing 1.67%. Financial sector lost 0.71% as the 10-year Treasury yield settled at 2.978%, staying below the psychologically important 3% mark. Rising mortgage rates coupled with surging home prices weighed down on the Real Estate sector.
On the economic front, the initial jobless claims reached the highest level in seven weeks at 234,000 as against the expected 220,000. Meanwhile, shortage of properties resulted in the existing home sales to come out below expectations.
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