NASDAQ Composite (.IXIC) drops as China cancels farm trip
Wall Street has dropped, and also finished the week lower, after a Chinese agriculture delegation cancelled a planned visit to Montana, dampening optimism about US-China trade talks.
The delegates, who had been set to visit US farm states next week, will return to China sooner than originally scheduled, the Montana Farm Bureau said on Friday.
Major stock indexes fell into negative territory after the cancellation, which came as trade talks were held in Washington and US President Donald Trump said he wanted a complete trade deal, not just an agreement for China to buy more US agricultural goods. Before the news, the S&P 500 and Dow industrials were in positive territory.
For months, Wall Street has bounced up and down with signs of improvement or deterioration in trade talks, often based on comments or tweets from Trump, a cycle investors have grown accustomed to.
“In this case, it’s a bit more concerning because it’s China making the decision, rather than Trump,” said Willie Delwiche, markets strategist at Baird in Milwaukee.
Trade optimism in recent weeks helped elevate the S&P 500 to just shy of its all-time high hit in July.
Eight of the 11 major S&P sectors fell on Friday. The S&P 500 consumer discretionary index and tariff-sensitive S&P 500 information technology index declined the most, down 1.2 per cent and 1.1 per cent, respectively. The Philadelphia chip index slid 1.8 per cent.
The Dow Jones Industrial Average fell 0.59 per cent to end the week at 26,934.46 points, while the S&P 500 lost 0.49 per cent to 2,991.99.
The Nasdaq Composite dropped 0.8 per cent to 8,117.67.
For the week, the S&P 500 fell 0.52 per cent, the Dow lost 1.05 per cent and the Nasdaq declined 0.72 per cent.
Netflix tumbled 5.5 per cent after CEO Reed Hastings made comments underscoring growing costs and rising competition from Walt Disney, Apple and other video streaming services.
Adding to Netflix’s woes, Evercore ISI said recent data painted an uncertain picture of the company’s international subscriber growth.
The S&P 500 healthcare index, which has been the worst performing S&P sector this year, clocked the biggest gain among the 11 major sectors, up 0.6 per cent.
Merck gained 1.4 per cent after the company’s drugs Pifeltro and Delstrigo received FDA approval for use in certain adult patients with HIV-1 who are “virally suppressed”.
Roku slumped 19.2 per cent after Pivotal Research started coverage of its shares with a “sell” rating.
Xilinx dropped 6.8 per cent after chief financial officer Lorenzo Flores said he would step down, prompting Bank of America Merrill to downgrade the chipmaker to “neutral”.
Advancing issues outnumbered declining ones on the NYSE by a 1.01-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favoured decliners.
The S&P 500 posted 22 new 52-week highs and no new lows; the Nasdaq Composite recorded 47 new highs and 51 new lows.
With investors unwinding positions in futures and options contracts before they expire, volume on US exchanges was 9.8 billion shares compared with a 7.1 billion-share average over the past 20 trading days.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 1,179.74.
The projected upper bound is: 1,299.35.
The projected lower bound is: 1,163.94.
The projected closing price is: 1,231.64.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 63.4136. This is not an overbought or oversold reading. The last signal was a sell 2 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 58.97. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 37 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 64. This is not a topping or bottoming area. The last signal was a sell 3 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 11 period(s) ago.
Rex Takasugi – TD Profile
ALPHABET INC C closed down -8.780 at 1,229.930. Volume was 61% above average (neutral) and Bollinger Bands were 6% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 1,226.59 1,187.29 1,140.49
Volatility: 12 36 34
Volume: 1,355,945 1,421,222 1,526,760
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
ALPHABET INC C is currently 7.8% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of GOOG.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on GOOG.O and have had this outlook for the last 9 periods.