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Stocks to Open Green after Strong Retail Sales Data

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The S&P 500 will open in the green after a strong retail sales number out this morning. It has been a volatile week and todays options expiration will no doubt create a volatile day. If the S&P can close above 3480, the bulls can claim victory with another green week.

September retail sales m/m came in at 1.9% v the 0.8% expected. Sales excluding auto and gas were 1.5% v the 0.5% expected. The control group, which is used for GDP calculations, came in at 1.4% v the 0.3% expected.  

The bulls will be happy with this data as it confirms the recovery and adds to the list of economic numbers that continue to surprise to the upside. The retiail data will bode well for earnings season, which will intensify next week.

S&P Futures Trading Levels

The S&P futures currently sit at 3489, which is right near the overnight high.

Support levels for the day will be 3464 and 3442.

Upside resistance is 3497 and 3519.

The current S&P trading environment is trending higher. The pullback from Mondays highs might form a potential consolidation period before the election, with support at the 50-day MA at 3400.

Three Stocks to Watch

ISRG- Earnings out last night from the surgical robot maker Intuitive Surgical. The company showed a 38.5% beat on EPS, but the stock is off over 3% premarket. While the company beat expectations, surgical systems shipped are down from last year. This could create weakness after the stock has run to all-time highs.

JBHT- The transportation services company reported a 4-cent miss on EPS, but beat on revenue.The stock is up over 80% from the March lows, so we are seeing a negative reaction to the print, with the stock off over 6% in premarket trading.

VFC– A manufacturer and marketer of apparel, V.F. Corp reported Q2 above expectations and guided higher. The company reported a 16-cent beat and guided FY21 at $1.20 v the $1.13 expected. The strong numbers have the stock up 2% before the bell.

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