Wall Street benchmarks end higher ahead of FOMC meeting


 

  • The DJIA climbed by 22.92 points to 26,112.53.
  • Nasdaq Composite Index put on 48.37 points, or 0.6%, to close at 7,845.02.
  • The S&P 500 index added 2.69 points to 2,889.67.

Benchmarks on Wall Street closed the day higher on Monday while large gains in social media and entertainment shares such as Facebook Inc. and Netflix Inc. For the DJIA, the stand-out performer was Boeing Co. BA, +0.03% which gained 2.2%. - The index climbed by 22.92 points to 26,112.53, while the S&P 500 index added 2.69 points to 2,889.67 and the Nasdaq Composite Index put on 48.37 points, or 0.6%, to close at 7,845.02. The focus for the week is the FOMC and a dovish outcome would be expected to support the benchmarks higher.

US data

The Empire manufacturing survey surprised significantly to the downside in June, dropping sharply to -8.6 from 17.8 (consensus: 11.0). Analysts at TD Securities explained that this was the largest monthly decline on record and its lowest level since October 2016:

"The report was weak all across, with all key indices declining vs May. New orders tanked to -12 from 9.7 and employment slipped to -3.5 from 4.7 before. The ISM-adjusted version of the index declined to 48.4 in June from 52.7 in May — the index's first drop below the 50 level since Dec 2016. This is an all-around weak report that suggests the manufacturing sector's outlook remains dim under a context of increased trade uncertainties."

DJIA levels

The technical outlook remains sideways leading into the FOMC while the index is consolidating above the 61.8% Fibo retracement level of April to June swing highs and lows. The 78.6% mark in the 26200s with a confluence of the 12th April gap is a key upside objective. However, a break below the 20/50-D EMA cross over guards a run towards the 200 D EMA and then the 25200 level, as being around the 11th March swing lows. 25000 guards a run towards 24500s and then 50% of the upside run made at the end of Dec at 24150.
 

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