- DJIA was ending the day flat at 27,222.
- Nasdaq Composite Index ended 0.3% higher at 8,207.
- The S&P 500 index added 0.4% to end at 2,995.
Wall Street’s stocks were closing Thursday’s session mostly higher Thursday as investors price back in the prospects of a new easing cycle at the Fed following New York President John Williams saying that the Fed’ should act quickly to prevent further economic weakness, giving the US economy a vaccine against it. The comments came before the blackout period ahead of the 31 July FOMC meeting where increasing odds of rate cut is expected, despite a recent run of solid data.
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Williams: Concerned inflation expectations are anchored too low – RTRS
The indexes subsequently rallied later in the day. The Dow Jones Industrial Average, DJIA, however, was the laggard due to the declines in UnitedHealth Group Inc. -2.27% and Boeing Co. BA, +1.85%, ending the day flat at 27,222. The S&P 500 index added 0.4% to end at 2,995, and the Nasdaq Composite Index ended 0.3% higher at 8,207.
U.S. data
The Philadelphia Fed factory index jumped by the most in ten-years in July, rising to 21.8 (the highest level since July 2018), and far exceeding expectations for a print of 5:
“Increases in orders, shipments, prices paid, and employment drove the rise in the index for the region. The New York Empire State survey earlier this week rose to 4.3 (from -8.6), a +13 gain from June. Taken together with the Philadelphia Fed gauge, which rose +21, we could be in for a strong ISM print later this month if the trend continues,”
analysts at ANZ bank explained.
DJIA levels
On a technical basis, the DJIA consolidates within a broader bearish correction where the Fibo’ targets with the confluence of stop territories come into play. The 23.6% retracement of the 3rd June low to 12th July recently printed high falls in at 26706 which meets April 23rd and 1st May double-top highs. The 38.2% retracement of the same range falls in at 26324 and meets 25th Feb and 11th June highs. The 50% meets the 3rd Dec spike high and mid-June lows. On the flip side, the 28500s remains as a key target.
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