Wall Street clutching to trade war truce glimmers of hope, stocks end in the green
|- The DJIA erased an earlier loss, ended higher by 102 points, or 0.4%, at 24,309.
- The S&P 500 index added 12 points, or 0.5%, to 2,627.
- The Nasdaq Composite finished 31 points higher, or by 0.5%, to 7,066.
Us stocks on Wall Street were lifted as investors clutched to promising headlines reported in The Wall Street Journal that the Trump administration was debating whether to ease tariffs on Chinese imports, albeit following late news on Wednesday that federal prosecutors have launched a criminal investigation into China’s Huawei Technologies Co. for allegedly stealing trade secrets from American corporations that it does business with.
Meanwhile, investors remain worried over the government shutdown, entering its 27th day. Elsewhere, eyes were fixated on the banking sector's performance; Morgan Stanley announced earnings and revenue that fell short of analyst expectations.
US data:
- US w/e 12 Jan Initial Jobless Claims, 213k, 220k forecast, 216k previous.
- US w/e 12 Jan Jobless Claims 4-Wk Avg, 220.75k, 221.75k previous.
- US w/e 5 Jan Continued Jobless Claims, 1.737 mln, 1.735 mln forecast, 1.722 mln prev
- US Jan Phily Fed Business Index, 17, 10.0 forecast, 9.4 prev, 9.1 revised.
DJIA levels
- Support levels: 24145 24002 23843
- Resistance levels: 24446 24604 24883
Technically, the price has broken free of a bearish consolidation phase and has broken the 50-D SMA located at 24159 as well as the 50% Fibo retracement Fibo of Dec's decline at 24239. Both daily MACD and RSI continue to drift higher on the daily outlook but bulls may make hard work of this area considering the number of technical confluences where we have the Oct-Dec lows, the 50% Fibo and 50-D SMA. On the downside, the focus stays on the 38.2% Fibo retracement located at 23595.
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