THE GIST (“THE WHAT”)
The S&P 500 index closed today’s session with moderate losses, down 25.69 points (-0.61%) at 4179.84. While the markets monitored the debt ceiling voting expecting the deal to get passed, dismal Chinese economic data and mixed U.S. economic data weighed down on sentiments.
Note: Our daily “S&P 500 Trading plan” will be posted around 9:30/10:00am EDT, every trading day.
Debt Ceiling Deadline Likely to Whipsaw the Markets
For the last published Results of the Morning Trading Plans, please click here
THE DETAILS (The “How & Why”):
Chinese economic data indicated a slowing manufacturing and service sector activity, stoking global economic concerns. U.S. job opening numbers for the month of April rose unexpectedly by 358,000 to 10.103 million, increasing the odds of Fed’s June rate hike. The Fed Beige Book hinted that while the economic activity was stable in April, employment increased at a slower pace and price increased at a slower pace.
The index tumbled at the open to hit the day’s low at 4166.15. Dovish comments from Fed officials signaling their support for a rate pause, however, helped claw back some of the day’s losses.
Oil prices fell to $68/barrel, sending energy stocks lower. Chip stocks gave back some of their recent strong gains on the back of profit taking following a solid runup amid AI excitement. Bucking the trend, Intel Corp jumped 4.83% after its Chief Finance Officer said that the chipmaker is expected to hit the upper end of its second-quarter revenue estimates.
Edward Lifesciences Corp and Dexcom Inc were other top performers of the session, both rising more that 3%. On the bearish side, Advance Auto Parts sunk to its 52-week low after the auto parts provider reported a big profit miss and slashing dividends by more than 80%.
With the U.S. House of Representatives passing the bill to suspend the debt limit until 2025 to avert a default, the markets will now turn their focus on Friday’s key jobs report and interest rate outlook.