S&P 500 closes out Monday on the top side near $4,500
- US equities broadly caught a bid during Monday trading.
- Tesla price target, Hostess deal highlights of US trading.
- Cars and junk food keep the major index in the green as Raytheon sees unexpected costs accumulate.
The Standard & Poor’s (S&P) 500 US mega index is seeing moderate gains to close out Monday’s trading, up around 0.35% near $4,490.00. The major US index is seeing the beginnings of a potential recovery after backsliding from $4,540.00 to last week’s low of $4,430.00.
US equities are getting a lift from the tech sector in Monday’s trading as market investors await key Consumer Price Index (CPI) inflation figures due in the midweek, where headline consumer inflation is expected to tick upwards to 0.5% MoM, compared to the previous period’s 0.2%. Meanwhile, Core CPI data is forecast to hold steady at 0.2%.
S&P juiced by tech stocks, limited losers help bolster index
The S&P was led higher by a few notable performers, including Tesla and Hostess, the maker of Twinkies.
Tesla (TSLA) shares lifted 9.3% after the stock saw its stock upgraded from equal weight to overweight by Morgan Stanley, who also raised their price target for the electric carmaker’s stock from $250 per share to $400.
Hostess Brands gapped higher by 19% when equity markets discovered that the company famous for Twinkies would be acquired by JM Smucker (SJM), with the jellies manufacturer acquiring the mass-produced pastries company in a cash and stock deal that values the company at $34.25 per share.
Stocks holding the back include the stock ticker RTX (RTX) formerly known as Raytheon Technologies, which tumbled 7% after it was revealed it would cost the company around $3 billion dollars to fix metal powdercoats used in the fabrication of engine parts for the Airbus A320 jetliner.
S&P 500 technical outlook
In the near term, the S&P equity index is somewhat hamstrung, floating between the latest turning points between $4,530.00 and $4,430.00, but long-term momentum rests firmly in the hands of the bulls. The index has steadily lifted the year’s opening prices of $3,845.00, but a significant downturn will see a notable lack of technical support levels on its way down to $4,360.00.
S&P 500 daily chart
Author
Joshua Gibson
FXStreet
Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.
