Morning Brief
Headline News:
U.S. stock futures are set for a higher open as investors appear to be buying the dips with megacap stocks. Apple(AAPL), Facebook(FB), and Alphabet Inc(GOOGL) were all higher in pre-market trading. Meanwhile, Treasury Secretary Janet Yellen said she sees no inflation problem brewing for the U.S economy. Investors will also be watching the private payroll data reported by ADP released later today, and the report is expected to show an addition of 800,000 new jobs in the month of April.
Markets:
The S&P 500 traded below the support line we were watching at 4176.22 and down close to the next support level at 4118.38. However, buying came in late in the day to rally the index back just below the old support. There was a big pick up in volume with 2,543,972,864 shares traded, but RSI moved lower, closing at 57.90. So, today’s close could be instructive on the future direction of the index. Another close below 4176.22 could mean more churning sideways at these levels, and a close above 4176.22 could have the index back on track for a potential new uptrend. The long tail formed after Tuesday’s trading is encouraging that the selling could be done for now.
We are currently long-term bullish and short-term bullish.
John N. Lilly III CPFA
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJFS
Partner, DJWMG
Windsor Wealth Planners & Strategist
Futures trading is speculative, leveraged, and involves substantial risks. Investing always involves risk, including the loss of principal, and futures trading could present additional risk based on underlying commodities investments.
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and changes of price movements.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S stock market. Past performance may not be indicative of future results. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investors’ results will vary. Opinions expressed are those of the author John N. Lilly III, and not necessarily those of Raymond James. “There is no guarantee that these statements, opinions, or forecast provided herein will prove to be correct. “The information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Investing always involves risk, and you may incur a profit or loss. No investment strategy can guarantee success. The charts and/or tables presented herein are for illustrative purposes only and should not be considered as the sole basis for your investment decision. International investing involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility. Investing in emerging markets can be riskier than investing in well-established foreign markets.
This is not a recommendation to buy or sell any company’s stock mentioned above.
US government bonds and treasury bills are guaranteed by the US government and, if held to maturity, offer a fixed rate of return and guaranteed principal value. US government bonds are issued and guaranteed as to the timely payment of principal and interest by the federal government. Bond prices and yields are subject to change based upon market conditions and availability. If bonds are sold prior to maturity, you may receive more or less than your initial investment. Holding bonds to term allows redemption at par value. There is an inverse relationship between interest rate movements and bond prices. Generally, when interest rates rise, bond prices fall and when interest rates fall, bond prices generally rise.