By Barbara Kollmeyer, MarketWatch Strategist: S&P 500 could
be a sell at 2,078
MADRID (MarketWatch) -- U.S. stock futures nudged higher on
Tuesday, as investors waited to see if Wall Street's record run
will continue, though a Veterans Day holiday could mean thinner
volume.
Also in focus for investors, the dollar tapped a fresh
seven-year high above Yen116, and Alibaba Group Holding Ltd.
retailer raked in more than $2 billion in sales in a single
hour.
Futures for the Dow Jones Industrial Average (DJZ4) rose 24
points to 17,577, while those for the S&P 500 index (SPZ4)
added 3 points to 2,037.10. Futures for the Nasdaq-100 index (NDZ4)
rose 8 points to 4,178.50.
A thinly traded session on Monday still sent the S&P 500
index (SPZ4) and Dow industrials (DJZ4) to fresh closing record
highs of 2,038.26 and 17,613.74, respectively. The CBOE Volatility
index (VIX) fell to its lowest level in seven weeks.
A sell signal for the S&P? Chris Weston, chief market
strategist at IG, said the S&P 500 could be a sell at 2,078. He
noted that over the last 18 months, whenever markets reach a point
when about 85% of stocks are trading above the medium-term 50-day
moving average, the index has hit a ceiling. Four near-term
catalysts for the next stock market crash
"Currently 78% of stocks are above the 50-day now, so a move to
2,078 would probably coincide with the top of the channel and back
up my view that funds may take some long exposure off the table,"
said Weston, in a note.
The Veterans Day holiday could weigh on volumes. While for Wall
Street stocks it is business as usual, bond markets and government
offices are closed, with no data for investors.
Investors will also be watching the dollar(USDJPY), which hit
fresh seven-year highs against the yen as it tapped Yen116. Those
gains came as the Nikkei 225 index rose 2.1%.
"The catalyst of a stronger yen in the medium term could be a
major change in the Federal Reserve policy. i.e. to keep interest
rates lower for longer, or to announce another QE [quantitative
easing] program if the U.S. economy slides in to a recession," said
Nour Al-Hammoury, chief market strategist at ADS Securities in a
note.
Boston Fed President Eric Rosengren said late Monday until there
is stronger evidence that inflation will return to 2%, policy
makers should stay patient about removing accommodation.
Alibaba's big shopping day: Shares of Alibaba(BABA) slipped 1.1%
in premarket trade even after its big online shopping day --
"Singles Day" -- raked in more than $2 billion in sales in one
hour. See Alibaba's 'Singles Day' bigger than Black Friday
Need to Know: Alibaba's potential 959,729% return and the retail
roar of Singles Day
Juniper Networks Inc.(JNPR) late Monday named Rami Rahim chief
executive officer, replacing Shaygan Kheradpir, who resigned with
immediate effect. Read: Juniper CEO resignation clouded in
mystery
GoPro Inc.(GPRO) slipped 0.3% ahead of the open after the
wearable-video-camera maker announced an $800-million secondary
offering of its shares.
D.R. Horton Inc.(DHI) reported a rise in fiscal fourth-quarter
earnings, but missed consensus estimates. Shares slipped 0.8%.
Zynga Inc.(ZNGA) shares rose 5.6% in thin premarket trade after
Jefferies lifted shares to buy from hold, citing potential from
high growth in mobile games.
The U.S.-listed shares of U.K. telecoms giant Vodafone PLC (VOD)
jumped 5.8% in premarket action after the company said it is
improving across its key European markets.
Other markets: European stocks tracked global markets higher.
Gold prices (GCZ4) fell around $4.10 to $1,155.50 an ounce as the
dollar climbed. Oil prices (CLZ4) also eased back, with Brent
trading at four-year lows. Read: Gold will signal when stocks have
peaked
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