S&P 500 Hits New Record Highs After Strong Durable Goods Orders

Summary:

S&P 500 started higher for one more day after better than expected Durable Goods Orders. The Durable Goods Orders came in at 11.2% well above the

S&P 500 started higher for one more day after better than expected Durable Goods Orders. The Durable Goods Orders came in at 11.2% well above the expectations of 4.3% in July. The Durable Goods Orders excluding Defense rose to 9.9% in July from the previous 9.2%. The Durable Goods Orders excluding the Transportation came in at 2.4% also above the estimates of 2%.
S&P 500 is trading higher for sixth consecutive trading session, gaining 5.3% in August.

In corporate news, Hewlett Packard reported second-quarter earnings of $0.32 per share, topping the forecasts. Revenue also came above the expectations. Carnival Cruises cancelled the cruises in early 2021 for two of its ships. Nordstrom reported a loss of $1.62/share for the second quarter, above the analyst’s expectations. The revenue dropped 53% in the second quarter amid the coronavirus lockdown.

Investors wait for the Jackson Hole symposium and for fresh clues on further stimulus and where the U.S. economy is headed after the health crisis. Market moving news will be Powell’s comments on inflation and the monetary policy.

S&P 500 Analysis

S&P 500 is 0.02% higher at 3,448 marking the sixth consecutive session with gains. The index is making consecutive higher highs and higher lows enhancing the bullish momentum. The index after the recent rally has entered the overbought area, and some investors might take some profits off the table soon.

Resistance for the S&P index is at 3,452 the daily and all-time high. Above that, the next resistance is at 3,500 psychological mark.

On the contrary, support stands at 3,440 the daily low. Next level to watch for S&P 500 on the downside is at 3,392 the low from August 24. More bids would emerge at 3,344 the low from August 20.