Wall Street lower on Monday amidst negative trade-talk sentiment

• 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.