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S&P 500 Pointing To Higher Start On May 21

By Michael KramerStock MarketsMay 21, 2019 08:22AM ET
www.investing.com/analysis/stock-are-set-to-blah-blah-amid-blah-blah-ba-on-may-21--seriously-200423373
S&P 500 Pointing To Higher Start On May 21
By Michael Kramer   |  May 21, 2019 08:22AM ET
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US Trading:

International Trading

  • Shanghai +1.23%
  • Japan Nikkei -0.14%
  • Hong Kong HSI -0.47%
  • South Korea Kospi +0.27%
  • UK FTSE +0.66%
  • German DAX +1.03%

Stock markets are getting a boost on May 21 after the US decided to lift the ban on Huawei for the next 90 days.

International Trading

Shanghai

Shanghai has stabilized around technical support at 2,825, and the RSI is starting to trend to higher. It could, at the very least, suggests that a bottom is getting put into place in the Chinese equity market. There is still a strong chance the Shanghai composite rebounds to around 3,065.

Shanghai composite, stocks, market, may 20
Shanghai composite, stocks, market, may 20

US Trading:

S&P 500 (SPY)

For now, the S&P 500 is pointing to a higher start on May 21. We will see if the S&P 500 can reclaim the uptrend we have been watching. It gets harder for the index because today the S&P 500 needs to close around 2,853 to get back into the uptrend. While it is possible for that happen, it won’t be an easy road. The 2850 region has offered strong resistance in recent days.

S&P 500, stock, may 21, market
S&P 500, stock, may 21, market

Stocks Rebounding

Anyway, to no surprise, the chip stocks are the stocks that are seeing the most significant benefit thus far. With stocks like Micron (NASDAQ:MU), NVIDIA Corporation (NASDAQ:NVDA), Advanced Micro Devices Inc (NASDAQ:AMD), Qualcomm (NASDAQ:QCOM), and Broadcom (NASDAQ:AVGO) all rising. It amazes me to some extent for the amount some of these stocks have dropped, given the companies, although having some exposure may not have a material amount to Huawei or tariffs at this point. Anyway.

Starbucks (SBUX)

You’d never know that Starbucks (NASDAQ:SBUX) whole growth strategy is built around growing its brand in China by looking at the chart. The stock is at an all-time high and has managed to pretty much go up in a straight line over the past year. Pretty amazing.

starbucks, sbux
starbucks, sbux

Cisco (NASDAQ:CSCO)

Cisco’s stock has performed well in the past few days despite all of the trade uncertainty. You want to know why? Read the conference call, and Chuck Robins comments:

And so last week when we saw the indication that the tariffs were going to move to 25% on Friday morning, the teams kicked in and we actually have executed completely on everything that we need to do to deal with the tariffs.

We are — operationally all that we needed to do is now behind us. And we see very minimal impact at this point based on all the great work the teams have done and it is absolutely baked into our guide going forward. So that’s the first question.

I wish every company could articulate how they are positions on tariffs like this. Should the stock rise above $57.25 the stock has room to run to $70, I think.

cisco, csco, stocks, may 21
cisco, csco, stocks, may 21

Visa (V)

Visa Inc Class A (NYSE:V) has performed very well recently too, and why shouldn’t it? What do Visa and China have common beside nothing?! The stock is approaching a break out at $166 that could fuel an increase to $178.

visa, may 21
visa, may 21

Mastercard (MA)

It isn’t as clear how much higher Mastercard (NYSE:MA) can rise, but it too is nearing a break out should it rise above $253.

mastercard, stocks, may 21
mastercard, stocks, may 21

Netflix (NFLX)

Netflix Inc (NASDAQ:NFLX) has nothing to do with China or the trade war, so why is the stock down? Broader market sentiment? Probably. The stock continues to hold $341, and as long as that holds perhaps, we can bounce back to $380.

netflix, nflx, may 31
netflix, nflx, may 31

Oil

Oil prices appear to be breaking and look set to rise to around $66.

usoil,
usoil,

Original post

S&P 500 Pointing To Higher Start On May 21
 
S&P 500 Pointing To Higher Start On May 21

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