Telecom lifts Nasdaq, Dow and S&P close with modest losses

Energy weighs on the S&P 500 on Thursday.
Telecommunication outperforms other major sectors.
Trade concerns continue to weigh on industrials.

Eren Sengezer FXStreet

Major equity indexes in the U.S. failed to determine a clear trend on Thursday as major sectors showed varying performances.

Crude oil prices failed to make a decisive recovery on Thursday even though the U.S. sanctions against Iran went into effect on Thursday and the S&P 500 Energy Index closed the day 0.9% lower. On the other hand, boosted by upbeat earnings from Motorola and T-mobile earlier this week, the S&P 500 Telecom Service Sector extended its upside and closed with a 1% gain.

Meanwhile, concerns over escalating trade conflict between the U.S. and China weighed on the trade-sensitive S&P 500 Industrials Index, which ended up losing 0.57% on the day.

"There is low volatility in the markets as the S&P and Nasdaq are just below all-time record highs, and it seems like markets are complacent right now. It's a risk-on trade. Investors are more comfortable with FAANG stocks and technology as far as valuations go, and these stocks have higher margins," Tom White, chief market strategist at TradeWise Advisors, in Chicago, Illinois, told Reuters.

The Dow Jones Industrial Average fell 69.30 points, or 0.27%, to 25,514.45, the S&P 500 erased 3.57 points, or 0.12%, to 2,854.13 and the Nasdaq Composite gained 5.03 points, or 0.06%, to 7,893.35.

DJIA Technical Outlook (via FXStreet Chief Analyst Valeria Bednarik)

"The Dow's positive momentum keeps fading according to technical readings in the daily chart, but by no means indicates an upcoming bearish continuation, as the index holds well above all of its moving averages, and with the 20 DMA maintaining its bullish stance. Technical indicators, however, retreat within positive territory, with the RSI pulling back from overbought readings."

"Shorter term, and according to the 4 hours chart, the index turned negative, as it closed below its 20 SMA, while technical indicators entered negative territory, maintaining their bearish slopes."

According to the analyst, supports could be seen at 25,491, 25,448, 25,40 while resistances align at 25,572, 25,648, and 25,690.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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