The S&P 500 rose slightly on Wednesday amid the Federal Reserve’s latest pledge to support the economy and the apparent progress in U.S. fiscal stimulus negotiations.

The broader-market index closed 0.2% higher at 3,701.17, just below a record closing high.  

The U.S. central bank said it will buy at least $120 billion of bonds each month “until substantial further progress has been made toward the Committee’s maximum employment and price stability goals.” The Fed declined to make any changes to the duration of its bond-buying program, but Chairman Jerome Powell said the central bank would increase its asset purchases if the economic recovery slows.

Congressional leaders closed in on a $900 billion rescue deal that would include a new round of direct payments to consumers. However, that package excludes a liability shield for businesses and state and local aid, CNBC has confirmed. Politico first reported the news.

The deadline on stimulus looms amid some of the darkest days of the pandemic. The U.S. is recording at least 212,000 new Covid-19 cases and at least 2,400 virus-related deaths each day, based on a seven-day average calculated by CNBC using Johns Hopkins University data.

Wednesday’s moves were kept in check by a steeper-than-expected drop in U.S. retail sales. The Commerce Department said retail sales fell by 1.1% in November. Economists polled by Dow Jones expected a decline of 0.3%.

Plan B : Short if market failed to support above 3698. Targets are 3672, 3647 and 3620.
 

U.S. stock futures were higher early Thursday morning as traders kept an eye on Washington, looking for clues about the prospects of additional fiscal aid.

The Nasdaq Composite gained 0.5% to end the day at 12,658.19, notching intraday and closing all-time highs, as Apple and Microsoft each popped more than 2%.

Wall Street was coming off a mixed session in which the S&P 500 and Nasdaq Composite rose while the Dow posted a small loss.

Those moves came after the Federal Reserve pledged to keep buying bonds until the economic recovery was completed. Fed Chairman Jerome Powell also said the central bank would increase its bond purchases if the recovery slows down.

On Thursday, investors will brace for the release of weekly jobless claims data and the latest numbers on U.S. housing starts. Those data releases will follow a disappointing retail sales report that kept investor sentiment in check on Wednesday.

Plan B : Long if market supported firm above 12696. Targets are 12727, 12760 and 12791. 

 

To subscribe to real time signal, email to us at futures.coin@gmail.com for details. Sign up today for December subscription.

Plan A : Remain buy as long as oil price trades firmly above 46.8. Targets are 47.4 and 48.2  

Plan B : Consider sell only if oil price surges but fails to breach above 48.2. Targets are 47.4 and 46.8