Wall Street ends the day on a sour note on Sino/U.S. trade pessimism
|- The Dow Jones Industrial Average (DJIA), fell 98.68 points, or 0.4%, to close at 25,764.
- The S&P 500 index lost 16.79 points, or 0.6%, to 2,859.53.
- The Nasdaq Composite Index slid 81.76 points, or 1%, to end at 7,816.28.
U.S. stocks ended the day bleeding from the session highs on trade concerns as we headed into the weekend where investors offloaded risk in anticipation of potential weekend antagonisms from either side of the Sino/U.S. trade spat.
Indeed, we might get some further clarity following the Chinese state media reporting that there has been little appetite in Beijing to resume negotiations, cheesed off following the Trump administration’s hike in tariffs on Chinese imports and a more recent combative move in the Huawei order that came into effect today, announced yesterday by Commerce Sec. Wilbur Ross.
A spokesman for China’s Ministry of Commerce termed the U.S. administrations actions as “bullying behavior,” that has resulted in “severe negotiating setbacks.” On a more positive note with respect to trade, the U.S. and Canada on Friday announced that a deal has been reached to end tariffs imposed by the U.S on aluminium and steel products from Canada and as part of the compromise, Canada will remove all retaliatory tariffs.
- To end, the Dow shed 0.7% for the week in its fourth losing streak while the S&P 500 dropped 0.8% and the Nasdaq fell 1.3%.
DJIA levels
Bulls made their move again to the topside of the channel through the 61.8% Fibo target ahead of 26000 but once again stalled there. Hourly stochastics lean bearish and a break to the 25200s guard a run to 24500s and then 50% of the upside run made at the end of Dec at 24150. To the upside, a break of 26000 opens the 38.2% Fibo target at 26126 ahead of the 26300s, around the Nov and Fed peaks.
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