S&P Turns Lower Despite Stronger Labor and Trade Data

S&P 500 started the session higher but turned negative after the first half-hour of the trading session, as U.S House Speaker Nancy Pelosi announced that the Judiciary Committee would proceed with drafting articles of Donald Trump impeachment.  As of writing the S&P 500 gives up 0.19% at 3,106. Dow Jones also trades lower at 27,607, while the Nasdaq is 0.15% lower at 8,553.

Labor Data Came in Stronger

The calendar included a better figure for initial claims, which fell to 203K beating forecasts of 215K and set a new 50-year low. The Challenger Job Cuts came in at 44.569K for November, the previous reading was 50.275K. The Trade Balance registered in at $-47.2B, beating forecasts of $-48.7B in October. The United States Factory Orders (month over month) came in at 0.3% in line with expectations in October.

S&P dragged down by Brown-Forman Corp. -6.24%, F5 Networks Inc. -5.98%, Alexion Pharmaceuticals Inc. -5.68% and Kroger Co. -4.02%. On the other hand S&P 500 getting a boost from Dollar Tree Inc. +2.36%, Ralph Lauren Corp. +1.90% and Macy’s Inc. +1.65%. The CBOE fear index trades 0.08% higher at 14.91.

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S&P 500 Levels to Watch

S&P 500 consolidates around the 3100 area, as investors digest the mixed signals from the trade negotiations between China and USA.

On the upside, S&P 500 first resistance stands at 3,119.20 today’s top, while a break above will open the way for fresh record highs above the 3,154 all-time high.

On the downside the 3,102.8 will provide the first support, but a break below that level will increase the pressure to the next support at 3,083 yesterday’s low. If bears clear this level, then the way will be open for a move down to the previous resistance that now has turned into support at 3,024.

European Indices Finished Lower

The European indices ended the trading session mostly lower, the FTSE 100 finished 0.70 per cent lower at 7,137 as the GBPUSD trades at 1.3158. DAX index ended 0.65 per cent lower at 13,054 while CAC 40 in Paris added 0.03 per cent at 5,801.More content