DJIA logs longest weekly losing streak since June 2011

The Dow DJIA added 95.22 points or 0.4%.
The S&P 500 index put on 3.82 points, or 0.1%, to 2,826.06.
Nasdaq Composite Index advanced 8.72 points, or 0.1%, to 7,637.01.

Following reports that President Donald Trump may ease restrictions against Huawei Technologies Inc. reviving the hopes in markets of a trade deal with China, Wall Street corrected higher into the last trading day of the week before the long weekend. The Dow DJIA,added 95.22 points, or 0.4%, to 25,585.69, while the S&P 500 index put on 3.82 points, or 0.1%, to 2,826.06. Meanwhile, the Nasdaq Composite Index advanced 8.72 points, or 0.1%, to 7,637.01. However, the DJIA, fell for a fifth week straight, logging the longest weekly losing streak since June 2011.

Market drivers

Trump said Thursday that the U.S. could ease up on its ban against Huawei as “some part” of a wider trade deal with China although he reiterated the Chinese company was “very dangerous” from a security standpoint. As for data, durable goods were disappointing across the range of readings, -2.5% decline in April vs the -2.0% expected. Nondefense Capital Goods Orders ex Aircraft (Apr) arrived -0.9% vs -0.3% and the revised 0.3% prior - That was the first decrease in four months and follows a dismal PMI data release earlier in the week, adding to fears of a global slowdown which could be a potential weight to the indexes once traders return from a long weekend.

DJIA levels

The index ended the week in consolidation within a narrower range at around the 50% Fibo retracement of 10th May highs and 13th May swing low. While below the 26000 psychological target, (50% Fibo of May swing high low range), short term stochastics have corrected higher again as price recovers from the lows and a break above 50% Fibo and 25620s, the descending resistance could be a challenge ahead of the 61.8% Fibo and 25700s. To the upside, bulls would target an eventual break of 26000 opens the 38.2% Fibo target at 26126 ahead of the 26300s, around the Nov and Fed peaks. To the downside, a break to the 25200s guard a run to 24500s and then 50% of the upside run made at the end of Dec at 24150.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.