|

Wall Street ends choppy session modestly higher

  • Upbeat earnings from Berkshire Hathaway improve the market sentiment.
  • Consumer discretionary and tech lead gains on Monday.
  • Facebook stages a strong recovery.

After starting the day in a quiet manner, major equity indexes in the United States traded flat during the first half of the session but gained traction later to close with modest gains.

Higher-than-expected profit figures from Warren Buffet's Berkshire Hathaway and a lack of new headlines on trade allowed the market sentiment to improve. The CBOE Volatility Index, Wall Street's fear gauge, dropped more than 3% to point to a higher appetite for risk. Furthermore, reports of Facebook looking to offer financial services to its users helped its shares gain more than 3% on the day.

The S&P 500 Information Technology Index added 0.6% on the while the S&P 500 Consumer Discretionary Index became the best performing sector of the day with a 0.67% rise boosted by Pepsi and Tyson Foods' gains.

"We still have a good amount of positive sentiment coming from a strong earnings season. ... That's certainly providing a significant amount of positive force to stocks today," Kristina Hooper, global market strategist at Invesco in New York, told Reuters.

The Dow Jones Industrial Average added 39.13 points, or 0.15%, to 25,501.71, the S&P 500 rose 9.94 points, or 0.35%, to 2,850.29 and the Nasdaq Composite gained 47.04 points, or 0.6%, to 7,859.06.

DJIA Technical Outlook (via FXStreet Chief Analyst Valeria Bednarik)

"The Dow is now one step closer to re-test the multi-month high posted late July at 25,592, maintaining the positive tone, despite a limited upward momentum, this last due to reduced summer volumes and the absence of macroeconomic headers this Monday. In the daily chart, the 20 DMA extended its advance a few points above the 23.6% retracement of the latest bullish run, while technical indicators grind higher, with the RSI currently nearing overbought readings."

"In the 4 hours chart, technical indicators hold within positive territory, but the Momentum heads south amid an intraday decline, that was quickly reverted on a test of the 20 SMA. Overall, the index is skewed to the upside,  as it would take a daily close below the mentioned Fibonacci support at around 22,225, to discourage bulls."

According to the analyst, supports could be seen at 25.457, 25,411, and 25,358 while resistances align at 25,541, 25,592, and 25,640.

Author

Eren Sengezer

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.

More from Eren Sengezer
Share:

Editor's Picks

AUD/USD consolidates above 0.7000; remains close to monthly top

AUD/USD holds steady above 0.7000 during the Asian session on Friday, trading just below the previous day's monthly low amid diverging forces. A hawkish RBA continues to support the Aussie, while the recent decline in US bond yields keeps the US Dollar depressed near a three-week low. However, oil-driven inflation fears reinforce Fed hike bets, which, along with geopolitical risks, could benefit the safe-haven buck and cap the currency pair.

USD/JPY bounces off one-month low; climbs to 157.00 amid reviving USD demand

USD/JPY rebounds from the 156.00 neighborhood, or a one-month low touched during Friday’s Asian session, with bulls looking to extend momentum beyond 157.00 amid the emergence of some US Dollar buying. Meanwhile, Japan's National CPI rose to a nine-month peak and reaffirmed BoJ rate-hike bets, which could support the Japanese Yen and cap gains for the currency pair.

Gold treads water around $4,000

Gold prices maintain its offered stance in place at the end of the week, hovering around the key $4,000 threshold per troy ounce. The persistent selling bias in the precious metal comes amid decent gains in the US Dollar and an acceptable rebound in US Treasury yields across the curve, all alongside further upside traction in crude oil prices.

Crypto Today: Bitcoin holds the 50-day EMA as Ethereum and XRP face structural resistance

Bitcoin gradually ticks up on Friday, trading above $81,000. The Crypto King has recently defended structural support near $80,000, reinforcing the prevailing bullish outlook. Ethereum similarly edges higher above $2,400, while Ripple trades above $1.32 after testing support around $1.30.

The French bond panic is overdone. Here's what the market is misreading 

France's 10-year government bond yield has climbed above 5%, reigniting fears of a sovereign debt crisis in the Eurozone. With public debt exceeding €3.5 trillion, persistent budget deficits and a fragmented political landscape, investors are increasingly questioning the French government's ability to stabilize its finances.

What November 3 means for the Fed's rate path and the US Dollar

The USD faces a decisive period ahead of the November 3 midterm elections. While markets anticipate another interest rate increase from the Fed in December, the battle for control of Congress could reshape fiscal policy expectations and, indirectly, the path of US monetary policy in 2027.