Wall Street closes in the green on tradewar hopes
|- The Nasdaq Composite Index put on 101.97 points.
- DJIA, climbed 269.93 points, or 1.1%, to 25,898.83.
- The S&P 500 index added 31.27 points.
In a major turnaround on Monday, with trade war sentiment flipping over and risk appetite bouncing back, the Dow Jones Industrial Average, DJIA, climbed 269.93 points, or 1.1%, to 25,898.83, while the S&P 500 index added 31.27 points, or 1.1%, to 2,878.38. The Nasdaq Composite Index put on 101.97 points, or 1.3%, to 7,853.74. On Friday the Dow tumbled 623.34 points, or 2.4%, to end at 25,628.90, leaving the blue-chip gauge with a 1% weekly decline.
However, on Monday, during a press conference after the conclusion of the Group of 7 meeting in France, Trump said that he thinks that China wants to make a trade deal “very badly.” and when he was asked if he would considering delaying or cancelling tariffs on China, the president said “anything’s possible.”
US data
As for data, US durable goods orders ex transport undershot expectations (and the previous read was revised lower). "Core capital goods ex aircraft fell for the first time since March, which all else equal isn’t a promising sign for business investment. Meanwhile, the Dallas Fed manufacturing index rebounded into positive territory for the first time in four months," analysts at ANZ Bank explained.
DJIA levels
While the DJIA gains some ground back, the 1915 to year-to-date Fibonacci retracement measures are still in vogue with the 23.6% marked at 21000 - below the Dec 2018 lows of 21712. The 21-monthly moving average is located at the May and Jun lows in the 24700s as a double-bottom target. The 23.6% Fibo' of the March 2009 swing lows to all-time highs is located in the 22,200s.
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