FXStreet reports that according to analysts at TD Securities, in the S&P 500 chart, 2880 is a notable technical threshold as it coincides with a cluster of pivots.

“Even though the S&P 500 closed in the green, it was below the 2880 level which appears like a notable pivot as it broadly coincides with a multitude of pivots (the Oct 3, 2019 low, Aug 2019 congestion zone, Feb 28, 2020 low, April 17, 2020, high).” 

“The S&P 500 overall remains below its 200-dma which sit just a hair above 3k.” 

“If the pivots are to be respected, the S&P 500 might be in the process of a head and shoulders formation as well. If validated, support levels we have our eye on are 2773 and 2650 (which could be neckline support).”

U.S. stock-index futures rose moderately on Wednesday, paring earlier gains after ADP's private-sector employment report showed a devastating situation in the U.S. jobs market. Investors also assessed the consequences of the economy reopening and Q1 earnings reports.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

Downgrades before the market open

American Intl (AIG) downgraded to Mkt Perform from Outperform at William Blair

Dow (DOW) downgraded to Neutral from Buy at UBS; target lowered to $32

Snap (SNAP) downgraded to Sell from Neutral at Citigroup; target raised to $14

General Motors (GM) reported Q1 FY 2020 earnings of $0.62 per share (versus $1.41 per share in Q1 FY 2019), beating analysts' consensus estimate of $0.34 per share.

The company's quarterly revenues amounted to $32.709 bln (-6.2% y/y), beating analysts' consensus estimate of $31.367 bln.

GM rose to $22.25 (+4.66%) in pre-market trading.

Barrick (GOLD) reported Q1 FY 2020 earnings of $0.16 per share (versus $0.11 per share in Q1 FY 2019), in line with analysts' consensus estimate of $0.16 per share.

The company's quarterly revenues amounted to $2.721 bln (+30.0% y/y), missing analysts' consensus estimate of $2.790 bln.

GOLD fell to $28.02 (-0.60%) in pre-market trading.

S&P 500: Resistance at 2934/3004 to cap and eventually form a top – Credit Suisse

FXStreet reports that analysts at Credit Suisse note that the S&P 500 has been capped as expected at the upper end of the flagged resistance/recovery objective at 2883/2934 - the price gap from early March, 61.8% retracement of the Q1 collapse and falling 63-day average.

“With a bearish average ‘death cross’ in place, we maintain our base case scenario strength has been corrective only and we continue to look for a top here for an eventual resumption of the Q1 decline.” 

“Below 2727 is now needed to mark a near-term top to add weight to our view, with critical then 200-week average at 2664.”

“A close above 2934 would suggest the recovery can extend yet further to the 200-day average and gap resistance at 2986/3004. We would look for a fresh attempt to set a top here.”

Walt Disney (DIS) reported Q2 FY 2020 earnings of $0.60 per share (versus $1.61 per share in Q2 FY 2019), missing analysts' consensus estimate of $0.90 per share.

The company's quarterly revenues amounted to $18.009 bln (+20.7% y/y), beating analysts' consensus estimate of $17.493 bln.

DIS fell to $99.33 (-1.71%) in pre-market trading.