U.S. stock futures are higher Thursday morning after good earnings results from Microsoft (MSFT) and Tesla (TSLA). The news helped to ease fears that the U.S.-China trade war would hurt the Q3 earnings reports. However, new orders for U.S. made capital goods fell more than expected along with September shipments. So, since the manufacturing sector makes up 11% of the U.S. economy, investors could remain cautious in today’s trading session.
The S&P 500 had another sideways trading day on Wednesday and closed at the upper end of the current trading range. The RSI index moved higher on the day, which is supportive of a potential test of the September high soon.
We are currently long term bullish and short term bullish.
John N. Lilly III
Accredited Portfolio Management Advisor℠
Accredited Asset Management Specialist℠
Portfolio Manager, RJ
Dominguez & Jones Wealth Management Group
The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and changes of price movements.
The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S stock market. Past performance may not be indicative of future results. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investors’ results will vary. Opinions expressed are those of the author John N. Lilly III, and not necessarily those of Raymond James. “There is no guarantee that these statements, opinions or forecast provided herein will prove to be correct. “The information contained was received from sources believed to be reliable, but accuracy is not guaranteed. Investing always involves risk and you may incur a profit or loss. No investment strategy can guarantee success. The charts and/or tables presented herein are for illustrative purposes only and should not be considered as the sole basis for your investment decision. International investing involves special risks, including currency fluctuations, different financial accounting standards, and possible political and economic volatility. Investing in emerging markets can be riskier than investing in well-established foreign markets. This is not a recommendation to purchase or sell the stocks of the companies mentioned.
A capital good (also called complex products and systems or (CoPS)) is a durable good that is used in the production of goods or services. Capital goods are one of the three types of producer goods, the other two being land and labor. The three are also known collectively as “primary factor of production ”