S&P 500 posts substantial gains in early trading as investors attention shift from fear to seeking for opportunities in the heavily battered stocks. Amazon (AMZN) stock hits all-time highs amid increased demand for its products due to coronavirus lockdown. Amazon will hire 175k more delivery workers to keep up with the growing demand. Johnson & Johnson beat market estimates in Q1 earnings and revenues but cut the full-year earnings guidance from $8.95 – $9.10 EPS to $7.50 – $7.90 EPS. JPMorgan posted first-quarter profit below consensus estimates; the bank posted earnings per share of 78 cents, the expectations were for $1.84.
Meanwhile, the IMF warned that the economy would suffer the worst financial crisis since the Great Depression. IMF now forecasts the global economy to shrink by 3% in 2020 revising the January prediction of 3.3% expansion. IMF also said the more than 90 countries asked for financial support the last month amid the coronavirus outbreak.
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S&P 500 Technical Levels To Watch
S&P 500 is 2.23% higher at 2826, making fresh monthly highs. Now the S&P 500 has gained over 30% from the March 23 lows. The index is down 12% lower in 2020, but the rebound accelerates as the index approaches the critical 50-day moving average.
On the upside, the first hurdle for the index will be met at 2,840 the daily high. The next level to watch is at 2,888 the 50-day moving average. A close above will give bulls the upper hand, and a move to 7964 the high from March 9 will be the next target.
On the other side, the daily low at 2,758 will provide intraday support for the S&P 500 index. A break below 2,758, might open the way for 2,714 the low from yesterday’s trading session. If bears break this level, then the next support stands at 2,633 the low from April 8.
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