Wall Street's stocks make back some ground but remain in bearish corrective territories
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- DJIA climbed a healthy 258.20 points, or 1.0%, to 26,036.
- The S&P 500 added 18.78 points, or 0.65%, to 2,887.94.
- The Nasdaq Composite index added 29.94 points, or 0.38%, to 7,856.88.
Despite lower European markets and news that increased the risk of a no-deal Brexit, US equity markets made solid gains overnight following the sell-off the previous day. U.S. stocks ended higher on Wednesday in low volume holiday markets as investors take time off heading into the U.S. Labor Day holiday weekend.
The Dow Jones Industrial Average, DJIA, supported by solid gains in energy stocks, climbed a healthy 258.20 points, or 1.0%, to 26,036, while the S&P 500 added 18.78 points, or 0.65%, to 2,887.94. Meanwhile, the Nasdaq Composite index added 29.94 points, or 0.38%, to 7,856.88. However, the threat of a no-deal Brexit and prolonged implications from a protracted U.S.-China trade war is likely to keep the benchmarks on guard. With respect to the trade wars, Trump tweeted “we are doing very well in China” in relation to the trade negotiations. However, there were headlines that China blocked a US navy vessel from docking at a wharf in Qingdao and the presence of US vessels in the South Seas will do little to appease Beijing.
US data
In the week ended August 23, mortgage applications fell 6.2%, the biggest decline since late April. "Refinancing and new home loan applications both fell, as the 30-year interest rate lifted to 3.94% from its previous low point of 3.90%," analysts at ANZ Bank explained.
DJIA levels
While DJIA stays within familiar ranges and is, for the best part, in bearish territory and under pressure. The 1915 to year-to-date Fibonacci retracement measures has the 23.6% marked at 21000 - below the Dec 2018 lows of 21712. The 21-monthly moving average is located at the May and Jun lows in the 24700s as a double-bottom target. The 23.6% Fibo' of the March 2009 swing lows to all-time highs is located in the 22,200s.
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