Wall Street ends mixed on a big week ahead

Markets were lacklustre given an absence of data releases and ahead of this week’s Federal Open Market Committee, (FOMC), announcement with the expectations look for a 25 basis point rate cut priced in. Consequently, Wall Street was a mixed bag on Monday, as the Dow Jones Industrial Average, DJIA, ended on the front foot, while the Nasdaq and S&P 500 struggled to hold onto their impressive leads while financials weighed. Subsequently, the DJIA added 28.90 points, 0.1%, at 27,221.35, while the S&P 500 index lost shed 4.89 points, or 0.2%, to 3,020.97. Meanwhile, the Nasdaq Composite Index lost 36.88 points, or 0.4%, to end at 8,293.33.

The week ahead jam-packed and Investors are facing a barrage of data events this week, as well as corporate quarterly earnings reports, the Fed decision a clash of geopolitical events including the Sino/US trade talks due to kick off on Tuesday in Shanghai. Meanwhile, President Trump maintained his criticism of the Federal Reserve saying that it had raised rates too early and by too much - The yield on the US 10-year Treasury was down 1.9bp to 2.05% into the close.

US data

The Dallas Fed Factory Index was negative for a third consecutive month in July, coming in at -6.3 from -12.1 in June:

"The index came in marginally weaker than expected and was hampered by weakness in prices received, unfilled orders and finished goods. Production edged up to 9.3 from 8.9 in June while new orders rose to 5.5 (from 3.7 in June). The net percentage of firms reporting hiring more employees rose to 16 (from 8.8 in the month prior); well above average while the hours worked index also rose to 6.6 (from 4.7 in June). Capital expenditure was also up (at 15.2) after dipping to 6.9 last month,"

analysts at ANZ bank explained. 

DJIA levels

The DJIA index has prospects of a test of the July highs back again. An extension of the YTD range of 1.2720% opens 29000. However, to the downside, 26905 remains on the radar below the 20-day moving average at 27175. Below there, the 23.6% retracement of the 3rd June low to 12th July recently printed high falls in at 26706 which meets April 23rd and 1st May double-top highs.