S&P 500 dips below 1990

The S&P 500 may have closed at a record high yesterday but soft economic data has put pressure on the index today.

US flag
Source: Bloomberg

The S&P 500 is currently trading at the 1987 level. Earlier today the US government revealed a drop of 19,000 in jobless claims but these gains were quickly eroded when you take into account manufacturing and new home sales both declined on the month.

Traders are still keeping an eye on Ukraine and the Middle East but the major focus, as my colleague Alastair McCaig pointed out, is reporting season. Nearly 69% of the S&P 500 components have exceeded earnings estimates. Amazon is reporting its second-quarter results after the 9pm (London time) - it is included in our extended hours trading.

353 of the 500 stocks that make up the S&P 500 are trading above their 50-day moving average, so traders are still by and large bullish.

The S&P 500 is receiving support at the 50-hour moving average of 1984. If US reporting season continues to be well received the S&P 500 could head towards 2000.

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