S&P500 Gained Amid New-Home Sales Rose to Session High
By: Eddy Peng Nov 28, 2017
The U.S. equity markets all increased yesterday on Monday, with the S&P 500 slightly gaining less than 0.05 percent while ever hitting the historical top at around 16:30 (GMT+2), after President Donald Trump urged passage of a sweeping tax bill on Monday.
For S&P 500 on Monday, the biggest gainers of the session were Newell Brands Inc (NYSE: NWL), which rose 5.01 percent or 1.42 points to close at 29.79. Signet Jewelers Ltd (NYSE: SIG) gained 4.92 percent or 2.45 points to end at 52.25 and Illumina Inc (NASDAQ: ILMN) was up 4.18 percent or 8.98 points to 223.84 in late trade.
However, The biggest losers included Western Digital Corporation (NASDAQ: WDC), lost 6.71 percent or 6.23 points to end at 86.55, while Marathon Oil Corporation (NASDAQ:MRO) declined 4.30 percent or 0.65 points to 14.48 and Newfield Exploration Company (NYSE: NFX) shed 3.42 percent or 1.05 points to close at 29.69.
Since Trump took office in January, he and his fellow Republicans have not passed any major legislation in Congress, despite controlling both chambers and the White House. Republicans accordingly rushed to bring the bill to a Senate vote, possibly as soon as Thursday.
Overhauling the tax code has been seen by Republicans as their last chance to revise marks of legislative achievement in 2017, which would win supporters back for the next year vote.
Trump tweeted: “The Tax Cut Bill is coming along very well, great support. With just a few changes, some mathematical, the middle class and job producers can get even more in actual dollars and savings and the pass through provision becomes simpler and really works well!”
Despite its bright outlook, some economists still concerned about the bill and the impact on the deficit and debt, which posed a threat on long-term economy. Besides that, a greater pressure on government debt would possibly make healthcare unaffordable for the public.
The Commerce Department said new home sales increased 6.2 percent to a seasonally adjusted annual rate of 685,000 units in October, the highest level since October 2007. September’s sales pace was revised down to 645,000 units from the previously reported 667,000 units.
New home sales are seen as a leading indicator and it signals a positive outlook for the national economy. The strong pace in a decade and offering an encouraging signal for residential construction.
The long-term outlook for the S&P 500 is currently moving along the developing ascending price channel, which started from the beginning of this year. It is right in the position near the upper price channel, and shows to be consolidating from narrowing between that and 20-day moving average.
While the short-term outlook in 30-minute chart is seen to decline at the moment. In the event that the index breaks lower than Nov. 27’s low of 2596.8, further loss might be seen by investors.
Chart 1: SPX500 Daily
Chart 2: SPX500 M30
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