- The Dow DJIA added 95.22 points or 0.4%.
- The S&P 500 index put on 3.82 points, or 0.1%, to 2,826.06.
- Nasdaq Composite Index advanced 8.72 points, or 0.1%, to 7,637.01.
Following reports that President Donald Trump may ease restrictions against Huawei Technologies Inc. reviving the hopes in markets of a trade deal with China, Wall Street corrected higher into the last trading day of the week before the long weekend. The Dow DJIA,added 95.22 points, or 0.4%, to 25,585.69, while the S&P 500 index put on 3.82 points, or 0.1%, to 2,826.06. Meanwhile, the Nasdaq Composite Index advanced 8.72 points, or 0.1%, to 7,637.01. However, the DJIA, fell for a fifth week straight, logging the longest weekly losing streak since June 2011.
Trump said Thursday that the U.S. could ease up on its ban against Huawei as “some part” of a wider trade deal with China although he reiterated the Chinese company was “very dangerous” from a security standpoint. As for data, durable goods were disappointing across the range of readings, -2.5% decline in April vs the -2.0% expected. Nondefense Capital Goods Orders ex Aircraft (Apr) arrived -0.9% vs -0.3% and the revised 0.3% prior - That was the first decrease in four months and follows a dismal PMI data release earlier in the week, adding to fears of a global slowdown which could be a potential weight to the indexes once traders return from a long weekend.
The index ended the week in consolidation within a narrower range at around the 50% Fibo retracement of 10th May highs and 13th May swing low. While below the 26000 psychological target, (50% Fibo of May swing high low range), short term stochastics have corrected higher again as price recovers from the lows and a break above 50% Fibo and 25620s, the descending resistance could be a challenge ahead of the 61.8% Fibo and 25700s. To the upside, bulls would target an eventual break of 26000 opens the 38.2% Fibo target at 26126 ahead of the 26300s, around the Nov and Fed peaks. To the downside, 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.
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