Wall Street moves lower with the DJIA dropping over 100 points
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- The DJIA closed lower by116 points at 27,219.
- The S&P 500 index dropped 19 points to 2,984
- The Nasdaq fell 37 points to 8,185.
U.S. benchmarks continued to slide mid-week while investors digested mixed earnings results along with geopolitics and U.S. data. The DJIA closed lower by116 points at 27,219, the S&P 500 index dropped 19 points to 2,984, while the Nasdaq fell 37 points to 8,185.
Another round of bank results showed came with Bank of America reporting better-than-expected results after gains in its consumer banking division. The U.S.-China trade negotiations have stalled and the Wall Street Journal reported at the stock market close that the Trump administration determines how to address Beijing’s demands that it ease restrictions on Huawei Technologies Co.
As for U.S. data,the Federal Reserve's Beige Book has stated that the economic activity continued to expand at a modest pace overall from mid-May through early July, with little change from the prior reporting period. Elsewhere, there was a focus on housing.
"US housing data came in on the softer side of market in June with housing starts falling 0.9% m/m (mkt: -0.7%, last: -0.4%) and building permits down 6.1% m/m (mkt: +0.1%, last: +0.7%). Weakness in the relatively volatile multi-family figures underpinned the softer headline, with starts down 9.2% m/m and permits down 16.8%. The downward trend in permits over the first half of 2019 suggests limited upside to construction activity in coming months, but downward pressure on mortgage rates should help put a floor under the decline," analysts at ANZ explained.
DJIA levels
On a technical basis, the DJIA’s bulls have shied away again and on a bearish correction, the Fibo' targets with the confluence of stop territories come into play. The 23.6% retracement of the 3rd June low to 12th Ju27560ly 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 flipside, the 28500s remains as a key target.
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