Wall Street plunges and the DJIA ends down -0.9%

• The S&P 500 index  ended 0.4% lower at 2,986.
• The Nasdaq Composite Index  finished 0.8% lower at 8,090.
• The  DJIA ended lower by 255 points, or 0.9%, at 26,770.

US benchmarks ended on the back foot, barley off from their lows on Friday while earnings took the limelight as well as a pluge in the shares of Johnson and Johnson (J&J) as well as Boeing sinking. At the same time, market sentiment was slightly downbeat as slower Chinese GDP growth weighed on global equities.  

Subsequently, the  DJIA ended lower by 255 points, or 0.9%, at 26,770 with Boeing 1 shedding about 70 points from the price-weighted average – The news was that the Federal Aviation Administration said the aviation and defence contractor withheld “concerning” messages from 2016 between employees about a flight-control system tied to two fatal crashes of the 737 MAX. J&J and shares knocked off around 57-points from the index. The S&P 500 index  ended 0.4% lower at 2,986, while the Nasdaq Composite Index  finished 0.8% lower at 8,090.

Chinese data and Fed speakers:

China slowed to just a 6% in the third quarter from a 6.2% pace in the second quarter – this was the slowest pace since the early 1990s, as business investment weakened.  

Meanwhile, remarks by Fed Vice-Chair Clarida provided no real new signals coming ahead of the Fed’s media blackout. “Clarida reiterated that the Fed will act as appropriate to sustain the expansion and that the US economy is in a good place but faces “evident risks”. He also said the economy is “muddling through” the recent uncertainty,” analysts at TD Securities explained.

DJIA levels

DJIA plunged below the 27000s and a close below the trendline support was guarding a run to the 200-day moving average, (DMA),  down in the 26000s. First up, however, the 21-DMA and the 50-DMA will likely be the first test for the bears. The bulls need to advance to the  27500s targets on a break of the 27200s – Trend-line resistance guards the July highs.