U.S. stock index futures pointed to a lower open on Friday after a report said China will slap new tariffs on U.S. goods.US Marketsread more
China said Friday that it will impose new tariffs on $75 billion worth of U.S. goods and resume duties on American autos.Marketsread more
Falling air cargo demand could be flashing warning signs about the broader economy.Transportationread more
The Koch brothers financed one of the most influential political networks in the modern era. The sprawling political empire includes conservative and libertarian nonprofits...Politicsread more
These are the stocks posting the largest moves before the bell.Market Insiderread more
Moulton was one of the few candidates not to make the debate stages in June and July.2020 Electionsread more
Emails between Facebook employees from 2015 illustrate early actions the company took to investigate third-party use of their data.Technologyread more
Here are the biggest calls on Wall Street on FridayInvestingread more
Dow to fall on China tariff news; Fed chief Jerome Powell speaks; Fed presidents offer their views; bonds drop; and Larry Kudlow adds a tax twistMarketsread more
Ideas include a rotation of Federal Reserve governors that would make it easier to curb Powell's power, according to the Washington Post.US Economyread more
The Fed's James Bullard says the central bank should continue to ease monetary policy because of the recession signal being flashed by the bond market.Investingread more
Technical analysts say more bullish signs for stocks are showing up in the charts.
The , for one, closed above a key technical level Tuesday, when it finished above its 200-day moving average for the first time since Dec. 3. The S&P rose 1.3 percent Tuesday to 2,744, a point above the 200-day, a momentum indicator based on the average price move over a 200-day period.
"It should open the door to 2,800 now. ... It does feel like the advance/decline line is really strong. The broad-based rally is strong. We have two days of overseas markets rallying. It doesn't seem as if it's a fake out for now. ... The active bulls keep stepping up where they have to," said Scott Redler, partner with T3Live.com who follows the market's short-term technicals. Advancers led declining issues by 3 to 1 on the New York Stock Exchange on Tuesday.
"It was another obstacle that this wall of worry got above," said Redler. He said traders became more confident when the S&P 500 regained the psychologically important 2,700 level on Friday, and now that the S&P has regained the 200-day, it is signaling more gains.
Stocks were higher Tuesday amid optimism for the China trade talks and a tentative deal to avoid a government shutdown.
Strategas Research technical analyst Todd Sohn said the more time that passes, the less likely it is the S&P 500 will retest the December lows.
"You could get a pull back to 2,550 to 2,600, and that may be all you need," he said.
"I do like what I'm seeing. It's important to remember the S&P is up 17 percent over 32 trading days. It's a really good run, and I don't want to stand in front of it, but at some point, it's going to need to pause for more than two or three days."
Robert Sluymer, technical analyst at Fundstrat, said broader moves afoot are signaling the U.S. stock market has put in a bottom and is likely to keep moving higher, even with choppiness along the way. One of those was the reversal by the Shanghai stock market, which led the sell-off in global markets.
"All the stuff that rolled over at the beginning of 2018, one by one, are showing evidence of bottoming. Semiconductors in the fourth quarter, and we saw housing bottom in October and November. We saw the market bottom in December, and we saw a general rebound in almost everything, primarily growth and cyclical stocks," said Sluymer. "'We see general improvements taking hold, with China being one of the last market indexes to have reversed its 2018 downtrend."
Sluymer said Shanghai reversed the 2018 downtrend going into the Chinese new year on Feb. 5, and it's continuing to follow through.
Growth is leading to the upside in the U.S. midcap range, also a positive. "Midcap growth versus value is making all-time highs," he said, pointing to the Russell midcap indexes.
As for the S&P, Sluymer watches the 200-week moving average and says that the S&P bottomed there in December. "We think that was a cycle low, similar to what we saw in 2016 and 2011," he said.
Strategists point to the semiconductors as one of the more important groups leading the turnaround story. "Semis were one of the first groups to top last year, now they're one of the first groups to bottom," Sohn. "You're seeing all these economically sensitive sectors working — industrials, semiconductors and homebuilders."
The Philadelphia Semiconductor Index is up 2.6 percent this week and 10.2 percent over the past month. It is 15 percent higher since the start of the year, even though the group continued to issue earnings warnings during fourth-quarter reporting season.
J.P. Morgan technical strategist Jason Hunter said he expects the S&P 500 could take some time to move past current levels, but it should resume its move back to the highs.
The move in semiconductors is an important part of it, and semiconductors were among the first to respond to global growth worries.
Hunter said the semiconductor group could act as a leading indicator for global manufacturing. "We expect those groups to maintain their leadership through the first quarter; however history suggests other markets transition to leadership positions if and when the data starts to validate the improved risk market performance," he wrote.
Hunter said the semis ignore poor fundamentals, but other assets like bonds and financial stocks only seem to reprice aggressively once the data start to improve. If the outperformance in the Philly SOX actually is signaling a bottom in global manufacturing PMIs, financials should then take a leadership position, he said.
"Based on the recent SOX Index performance, that index's historic relationship with the PMI data, and the known base effect for the year-over-year performance through the first half of 2019, we suspect the PMI trajectory can start to improve into the second quarter," Hunter wrote.
Strategists had been looking at the fact that both bonds and stocks have recently been moving higher, an unusual move. Stocks paused for several days before moving higher, while yields have been fairly flat. Yields, which move opposite price, retreated after the Fed sent a dovish message that it would likely pause in its rate hikes. That was bullish for stocks.
"I wouldn't mind seeing yields higher here," Strategas' Sohn said. "I would like to see the 10-year get a little boost. Part of that has to do with what's going on abroad. German 10-years are yielding just 13 basis points at this point." The U.S. 10-year was slightly higher Tuesday at 2.68 percent.
Hunter notes the 10-year yield is trading in the middle of its early 2019 range, with key medium-term resistance near 2.5 percent and initial support near 2.8 percent.
"The range can hold into March, but we expect it to bearishly break into the spring and for yields to back up toward key medium-term support clustered near 3.00%. That is our base-case mid-year target," he wrote.