Wall Street ends mixed following Fed speaker's solid reminders
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- DJIA was ending the day flat at 27,222.
- Nasdaq Composite Index ended 0.3% higher at 8,207.
- The S&P 500 index added 0.4% to end at 2,995.
Wall Street's stocks were closing Thursday's session mostly higher Thursday as investors price back in the prospects of a new easing cycle at the Fed following New York President John Williams saying that the Fed' should act quickly to prevent further economic weakness, giving the US economy a vaccine against it. The comments came before the blackout period ahead of the 31 July FOMC meeting where increasing odds of rate cut is expected, despite a recent run of solid data.
The indexes subsequently rallied later in the day. The Dow Jones Industrial Average, DJIA, however, was the laggard due to the declines in UnitedHealth Group Inc. -2.27% and Boeing Co. BA, +1.85%, ending the day flat at 27,222. The S&P 500 index added 0.4% to end at 2,995, and the Nasdaq Composite Index ended 0.3% higher at 8,207.
U.S. data
The Philadelphia Fed factory index jumped by the most in ten-years in July, rising to 21.8 (the highest level since July 2018), and far exceeding expectations for a print of 5:
"Increases in orders, shipments, prices paid, and employment drove the rise in the index for the region. The New York Empire State survey earlier this week rose to 4.3 (from -8.6), a +13 gain from June. Taken together with the Philadelphia Fed gauge, which rose +21, we could be in for a strong ISM print later this month if the trend continues,"
analysts at ANZ bank explained.
DJIA levels
On a technical basis, the DJIA consolidates within a broader bearish correction where the Fibo' targets with the confluence of stop territories come into play. The 23.6% retracement of the 3rd June low to 12th July recently printed high falls in at 26706 which meets April 23rd and 1st May double-top highs. The 38.2% retracement of the same range falls in at 26324 and meets 25th Feb and 11th June highs. The 50% meets the 3rd Dec spike high and mid-June lows. On the flip side, the 28500s remains as a key target.
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