Wall Street's benchmarks advance nipped in the bud
|- DJIA dropped 23.5 points to 27,335.6, a loss of 0.1%.
- The S&P 500 index fell 0.3% to 3,004.0, shedding 10.3 points.
- The Nasdaq Composite index lost 0.4% low, or a 35.4 point drop, to 8,222.8.
Wall Street's benchmarks were a little lower on Tuesday following record closes on Monday and President Donald Trump said an agreement with China on trade tariffs had “a long way to go. After setting a new intraday high of 27,398.68.9, rising 39.6 points Tuesday morning before paring those gains, the Dow Jones Industrial Average, DJIA, dropped 23.5 points to 27,335.6, a loss of 0.1%. On Monday, the Dow gained 27.1 points, or 0.1% record of 27,359. On Tuesday, the S&P 500 index fell 0.3% to 3,004.0, shedding 10.3 points and the Nasdaq Composite index lost 0.4% low, or a 35.4 point drop, to 8,222.8.
Bank earnings painted a mixed picture of the economy and financial services sector although US data was solid which showed the continued health of the consumer, reflected through Retails Sales data. Earnings reports from major banks JPMorgan Chase & Co. JPM, +1.07% Goldman Sachs GS, +1.86% and Wells Fargo & Co. WFC, -3.02% were in the mix. Shares of Goldman Sach climbed 1.9% after the bank reported second-quarter earnings and revenue that surprised to the upside while raising its dividend by 47%. On the flip side, the shares of Wells Fargo dropped 3.0%, even after the bank reported second-quarter earnings and revenue that surpassed analyst forecasts.
U.S. data
US Retail Sales beat expectations in June, rising 0.4% m/m (0.2% expected) with core sales up a solid 0.7% (0.3% expected)"
"On a 3-month annualised basis, sales are up 7.5% with ex-auto and gas up 6.0%. The gains were fairly broad based with only electronics seeing a small pull back, suggesting that the consumer is alive and well. Factories were looking less rosy in June though, with industrial production flat on the month, a bit weaker than expected," analysts at ANZ Bank 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 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 flipside, the 28500s remains as a key target.
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