The S&P 500 will open above the 3420 level, which has been a big resistance area for investors to surpass since early September. If the buying can hold, this would mark a victory for the bulls to start out the fourth quarter.
There is a lot of news flow this morning, but the key to the rally over the last two days was stimulus. While a large package doesn’t seem to be realistic, investors are hopeful that a skinny deal can be agreed on. From there, the election will determine how the next stimulus package comes forward.
The bull’s theory into year's end is a combination of stimulus, good corporate earnings and clarity on election results will be enough to take stocks back to all-time highs.
Economic data out this morning, with jobless claims coming in above expectations. While the claims number won’t move the market, the high number remains and could motivate Congress on stimulus. Claims came in at 840k vs the 820k expected.
S&P Futures Trading Levels
The S&P futures currently sit at 3430, which is right near the overnight high.
Support levels for the day will be 3410 and 3385.
Upside resistance is 3438 and 3470.
The current S&P trading environment has been a sideways chop, but looking to breakout higher. The 50-day MA has offered support just above 3370 and the 161.8% Fibonacci retracement level, a target for the bulls, is 3475.
Three Stocks to Watch
IBM- Big Blue reported slight earnings beat and announced the Managed Infrastructure Service unit will be spun off into a new public company. The market loves the value this might create and the stock is up over 10%.
ROKU- Needham reiterated its Buy rating and took its price target to $255 from $190. The stock is trading up 4% in the premarket.
REGN– President Trump had many kind words for Regeneron’s COVID-19 treatment. In a short video out yesterday, he called the drug a cure and said he felt twenty years younger after he took it. The company has submitted an application to the FDA for emergency use authorization. The stock is up 4.5% premarket on the positive news.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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