US stocks end lower amid soft data and earnings

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 29, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - US stocks closed with mild losses a volatile session Thursday, a day after the Federal Reserve left the door open to raise interest rates in December.

    The Dow Jones Industrial Average dropped 23.72 points, or 0.13%, to 17,755.80. The S&P 500 little changed at 2,089.41. The Nasdaq Composite closed down 21.42 points, or 0.42%, at 5,074.27.

    On the data front, US economic growth cooled during the third quarter according to the GDP advance estimate. GDP grew 1.5% in Q3, versus 1.6% expected while separated data showed pending home sales declined again in September.

    Stocks were also weighed by weaker-than-expected earnings reports, from GoPro, the camera maker, and Buffalo Wild Winds, a dining restaurant and sports bar franchise.

    DJIA technical view

    “The technical picture in the index, however, continues favoring an upward continuation, given that the daily chart shows that the index extended further above its 200 DMA whilst posting a higher high and a higher low. In the same chart, the technical indicators maintain their bullish slopes, despite being in overbought territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the index is pressuring its weekly highs an hour after the close, whilst holding above a bullish 20 SMA. Also, the technical indicators have regained the upside well above their mid-lines, in line with the longer term view”.

    Support levels: 17,735 17,682 17,620. Resistance levels: 17,830 17,895 17,950.
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