Wall Street notches another positive close, DJIA 45 points higher, up 0.2%

  • Dow Jones Industrial Average, DJIA, finished 45 points higher, up 0.2%.
  • S&P 500 added around 9 points, or 0.3%, to settle near 3,010.
  • The Nasdaq Composite finished near 8,194, up around 25 points, or 0.3%. 

US stocks continue to relish in the supposed de-escalation U.S.-China trade tensions as well as the prospect of a new easing cycle on the back of the fresh round of stimulus measures by the European Central Bank. 

Bloomberg News said administration officials were weighing an interim deal with Beijing, though White House officials denied they were working on an agreement. Either way, positive sentiment grows and the Dow Jones Industrial Average, DJIA, finished 45 points higher, up 0.2%, near 27,182 while the S&P 500 added around 9 points, or 0.3%, to settle near 3,010. The Nasdaq Composite finished near 8,194, up around 25 points, or 0.3%. 

US data

US headline August CPI rose 0.1% m/m (1.7% y/y), restrained by a 1.9% fall in the energy component. "However, core CPI beat expectations, rising 0.3% m/m (2.4% y/y). This is the third consecutive month where core CPI has come in at 0.3% m/m, with the 3m annualised rate at 3.6% the highest since 2006 (and the highest annual core inflation since 2011). Medical care and shelter were the biggest drivers, but the broad-based increase suggests the period of weak inflation has passed, bringing into question how far the Fed can cut," analysts at ANZ Bank explained.

DJIA levels

The DJIA has printed another higher high bt has left a bearish doji candle formation through the 27200s targets and fell just shy of the  27398 target level to 27306. On the flip side, the 200-DMA is located at 25697 below the 21-DMA that sits just above the pivot. Further below lies the May and Jun lows in the 24700s as a double-bottom target. 

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