S&P 500 retreat in a muted session after mixed economic data. The United States Philadelphia Fed Manufacturing Survey came in at 27.5 topping the expectations of -23 in June and recovering from -43.1 in May. The current new orders index increased 42 points to 16.7, while the shipments index rose 56 points to 25.3.
A new record number of new coronavirus cases in some states weigh on stocks and investors are nervous that the fast recovery scenario might be halted by a second coronavirus wave.
Jobless Claims Continue To Disappoint
First-time claims totalled 1.5 million last week, above the analyst’s expectations of 1.3 million. The weekly jobless claims stayed above 1 million for the 13th consecutive week as the coronavirus crisis continues to hit the U.S. economy. The Continuing Jobless Claims came in at 20.544M above the forecasts of 19.8M on June 5, while the 4-week average fell from previous 2002K to 1773.5K on June 12. Workers receiving benefits totalled 29.1 million, a drop of more than 375,000.
S&P 500 is 0.18% lower at 3112 as the correction from recent highs continues testing the 3,100 mark. The technical picture for S&P 500 is bullish despite the recent correction as long as the price trade above major daily moving averages.
Looking further south, immediate support for S&P 500 stands at 230.53 the daily low. The next level for the S&P 500 to watch in case of further selling pressure is at 3020 the 200-day moving average. Bears will take control below the 200-day moving average targeting 2950 the 50-day moving average.
On the other hand, initial resistance stands at 3131 the daily top. The next hurdle for S&P 500 will be met at 3156 the high from June 17. In case of a move higher, the bulls will be looking for an extension above 3194 the high from June 11.