Wall Street slumps on first day of business for June following worst May since 2010
|- Risk off markets persists, weighing heavily on the tech-sector.
- US May manufacturing ISM index fell short of expectations.
- The DJIA remains below the 23.6% Fibo around 25200.
Wall Street ended on the back foot yet again while U.S. stocks ended lower on Monday, with no let-up in the risk-off mood following the worst May performance since 2010. There was a focus on the tech sector and the tech-heavy the Nasdaq Composite COMP tumbled 1.6% to end near 7,333. The S&P 500 SPX dropped 0.3% to finish around 2,744 while the Dow Jones Industrial Average picked up 5 points to finish around 24,820, based on preliminary numbers.
In company news, shares of Google GOOG, lost 6.6% after a report said the Justice Department would look into the company for possible breaches of antitrust law. Shares of Facebook Inc. FB, dropped 7.8% with news that the Federal Trade Commission secured the rights to investigate Facebook for antitrust violations.
US data
As for US data, the US May manufacturing ISM index fell short of expectations, arriving at 52.1 (from 52.8 in the month prior)." Interestingly, the employment sub-component rose in May to 53.7 (from 52.4 in the month prior) whilst new orders were up to 52.7 (from 51.7 in April). Prices paid also came in ahead of market expectations at 53.2 (from 50.0 in April). The survey’s special question highlighted concerns for US and global economic growth with respondents concerned about the US-China trade dispute and the impediments created by the resulting uncertainty," analysts at ANZ bank explained.
DJIA levels
The DJIA remains below the 23.6% Fibo around 25200 and the bears can look towards 24500s and then 50% of the upside run made at the end of Dec at 24150. On the upside, bulls need to get back above the 38.20% Fibo in the 25300s, a triple bottom level on the 4HR outlook. 25430 is roughly where the 200 D EMA is located.
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