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  • DJIA, dropped 79.59 points, or 0.30%, to 26,891.12.
  • S&P 500 index fell 7.25 points, or 0.24%, to 2,977.62.
  • The Nasdaq Composite Index fell back 46.72 points, at 8,030.66, a loss of 0.58%.

Stocks on Wall Street were a touch lower on while investors weighed the risks between U.S.-China trade relations and the whistleblower complaint alleging President Donald Trump sought foreign election interference. Subsequently, the Dow Jones Industrial Average, DJIA, dropped 79.59 points, or 0.30%, to 26,891.12 and the S&P 500 index fell 7.25 points, or 0.24%, to 2,977.62. The Nasdaq Composite Index fell back 46.72 points, at 8,030.66, a loss of 0.58%.

On the trade front, news wires over Bloomberg reported that the U.S. is unlikely to extend a waiver allowing American firms to do business with Chinese telecom giant Huawei Technologies Co which came contrast to the recent optimism in Trump’s and Chinese official’s comments over the past week. Just yesterday, Trump had told reporters that an end to the U.S.-China trade war could happen “sooner than you think” and repeated that China wants “to make a deal very badly.”  

US data:

US quarter2 Gross Domestic Produce was in line with the previous estimate of 2.0%. “The data confirmed an over-reliance on consumption in economic activity as personal consumption expenditures rose 4.6% saar. The investment was weak. Non-residential private investment fell 1.0%, with equipment investment rising a negligible 0.8% saar. Exports fell 5.7%. The drag from net exports reflects elevated trade tensions and uncertainty. Government spending rose 4.8% saar. In other data releases, initial claims were in line (213k) and the August goods trade deficit was unchanged on the month at $72.8bn (+0.3bn), analysts at ANZ Bank explained.

DJIA levels

The index remained above the 21 and 50 4-hour moving averages marking a higher low on Thursday and travelling up from the lowest levels since September 10th. On the upside, the index has been  testing the trend-line resistance at the highs of the day here at 27016 which are guarding a correction  back to the September highs in the 27300s. On the downside, a drop to a 50% mean reversion of the Aug to recent swing highs at 26379 guards territory down to the low 26000s that meets a 61.8% retracement.