- DJIA, lost 95.70 points, or 0.4%, to finish at 26,478.02.
- The S&P 500 index lost 13.22 points, or 0.5%, to end at 2,938.79.
- The Nasdaq Composite Index lost 26.18 points, or 0.3%, to finish at 7,956.29.
US stocks on Wall Street were ending off their best levels and lower on Monday as sentiment remained fickle around expectations for trade talks that are set to kick off this week between the US and the Chinese delegation. There had been some caution related to the talks as investors sifted through the various related, yet conflicting, trade-headlines.
The Dow Jones Industrial Average, DJIA, lost 95.70 points, or 0.4%, to finish at 26,478.02. The S&P 500 index lost 13.22 points, or 0.5%, to end at 2,938.79 while the Nasdaq Composite Index dropped 26.18 points, or 0.3%, to finish at 7,956.29. Last week, the Dow had lost 0.9% for a third weekly decline. The S&P 500 was 0.3% lower and the Nasdaq squeezed out a gain of0.5% to break a two-week losing streak.
Day started out with optimism on the trade front
The day started out with optimism on the trade front, with Larry Kudlow telling reporters that the U.S. could be open to a short-term deal. He also praised China for being “a little more cooperative recently” with n increase of U.S. agricultural goods purchases. However, it was also noted that while the Chinese were looking to make a deal where feasible, the tougher negotiations will unlikely be resolved until next year; The Fox Business Network reported that Chinese Commerce Ministry was prepared to strike a deal on areas where the U.S. and China agree, but that it will not make “changes to their laws to protect intellectual property.”
Meanwhile, “the market continues to debate the degree of easing required from the Fed following the recent fall in unemployment but weakening activity indicators,” analysts at ANZ noted.
DJIA levels
The index has stalled at the 21 and 50-Day moving averages with support coming in from the 200-DMA having completed and extended beyond a 50% mean reversion of the August to recent swing highs and to score below the psychological 26000 level in recent sessions. A break to the upside and through the mentioned DMAs as well as the Sep lows-resistance line in the mid-26000’s will open prospects back to the Sep highs through 27200.
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