Wall Street recovers early losses, closes with moderate gains
|- Uncertainty surrounding the U.S. - China trade conflict weighs on trade-sensitive sectors.
- Consumer staples sector gains traction on upbeat consumer confidence data.
Major equity indexes in the United States started the day modestly lower but were able to retrace their fall and close the day in the positive territory.
The upbeat consumer sentiment report published by the Conference Board on Tuesday hinted at strong sales in the holiday season and boosted the S&P 500 Consumer Staples Index, which closed the day 0.91% higher. Commenting on the report, "The US consumer is the most optimistic in the world The Conference Board Nov confidence index fell to 135.7 from 137.9 in Oct but it "remains at historically strong levels" according to Lynn Franco of the Board. Friday's shopping surge was no fluke. Santa will be busy this year," said FXStreet senior analyst Joseph Trevisani.
On the other hand, speaking to reporters at a press conference ahead of the G20 summit, White House economic adviser Kudlow said that China's response to their requests on trade so far had been disappointing. The trade-sensitive S&P 500 Materials and Industrial indexes erased 1.25% and 0.25%, respectively on Tuesday.
The Dow Jones Industrial Average added 108.49 points, or 0.44%, to 24,748.73, the S&P 500 rose 8.67 points, or 0.32%, to 2,682.12 and the Nasdaq Composite gained 0.85 points, or 0.01%, to 7,082.70.
DJIA Technical outlook by FXStreet Chief Analyst Valeria Bednarik
The Dow settled near its weekly high of 24,761, and despite up for a second consecutive day, the upside seems well limited and the advance corrective according to the daily chart, as technical indicators have barely bounced from oversold readings, while the index develops far below its moving averages.
Shorter term, and according to the 4 hours chart, the index offers a bullish stance as an intraday decline was contained by buyers aligned around a mild bullish 20 SMA, while technical indicators partially lost their upward strength, but held near daily highs.
Support levels: 24,671 - 24,628 - 24,563.
Resistance levels: 24,785 - 24,844 - 24,896.
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