- The Nasdaq Composite Index put on 116.51 points, or 1.5%, to close at 7,973.39.
- The Dow Jones Industrial Average, DJIA, climbed back 326.15 points, or 1.3%, to end at 26,362.25.
- The S&P 500 index added36.64 points, or 1.3%, to end at 2,924.58.
Benchmarks in the US were were correcting higher again on Thursday, while investors were enthused by encouraging US and Chinese officials comments feeding their way through the media channels of the past 48-hours. News out of Beijing was more tolerating of the US in their response to the latest round of tariffs imposed by Washington. The Dow Jones Industrial Average, DJIA, climbed back 326.15 points, or 1.3%, to end at 26,362.25, while the S&P 500 index added36.64 points, or 1.3%, to end at 2,924.58. The Nasdaq Composite Index put on 116.51 points, or 1.5%, to close at 7,973.39.
US data
The second revision to Q2 GDP came in line with expectations, rising 2.0% saar vs 2.1% in the first estimate.
“Personal consumption was revised up to 4.7% vs 4.3% as spending on durable goods rose 13% saar. The background to consumption remains very strong and is now supported by lower interest rates. Business investment data were largely unchanged, with equipment investment up 0.7% saar. Net trade dragged: exports fell 5.8% and imports rose 0.1%. Corporate profits were up. The data point to an economy that is becoming over-reliant on consumption for growth,”
analysts at ANZ Bank explained.
DJIA levels
DJIA is attempting to break out of familiar ranges to the upside but remains in bearish territory and under pressure. Should the bulls get above 26500s and hold, then the 26900s will be in focus. On the downside, the 1915 to year-to-date Fibonacci retracement measures has the 23.6% marked at 21000 – below the Dec 2018 lows of 21712. The 21-monthly moving average is located at the May and Jun lows in the 24700s as a double-bottom target. The 23.6% Fibo’ of the March 2009 swing lows to all-time highs is located in the 22,200s.
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