- The Nasdaq Composite Index added 73.44 points, or 0.9%, to close at 8,162.99.
- The Dow Jones Industrial Average, DJIA, added 57.44 points, or 0.2%, to close at 26,827.64.
- S&P 500 index added 20.52 points, or 0.7%, to finish around 3,006.72.
A combination of better than expected earnings and the continued optimism over tariff talks helped to lift US benchmarks on Monday. The Dow Jones Industrial Average, DJIA, added 57.44 points, or 0.2%, to close at 26,827.64 on the day. However, Boeing Co.’s stock BA skidded into a two-month low, down 3.8%, following last Friday’s news that misled federal aviation authorities about the safety of the 737 Max jet making for a 70-point drag on Dow.
Elsewhere, the S&P 500 index added 20.52 points, or 0.7%, to finish around 3,006.72 and within inches of its closing high of 3,025.86 set on July 26. The Nasdaq Composite Index added 73.44 points, or 0.9%, to close at 8,162.99.
Trace deal and Brexit headlines take focus
There were no data release in the US session and instead focus remained with trade talk/deal progress and Brexit. President Trump was giving some upbeat comments to the market, suggesting that a trade deal will be signed in November, citing the Chile summit as a likely meeting to sign a deal with China. Elsewhere, the UK parliament did not hold a second vote on Boris Johnson’s Brexit deal after the House of Commons speaker John Bercow vetoed it.
“John Bercow vetoed it on the grounds that it was the same issue that had been debated on Saturday,” analysts at ANZ Bank explained, adding, “this decision means that in order to get a deal the government will have to try to pass the full Withdrawal Agreement Bill. This legislation will now be introduced to the House of Commons which will have its final vote on Thursday before the bill is then debated an voted upon by the House of Lords.”
The DJIA remains below the 27000s and prior trendline support, albeit now up to test the 200-hour moving average. On the downside, the 21 and 50-day moving average are guarding a run to the 200-day moving average, down in the 26000s. The bulls need to advance to the 27500s targets on a break of the 27200s – Trend-line resistance guards the July highs.