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27 Aug 2015
US stocks gain for second session in a row
FXStreet (Córdoba) - Despite a sharp pullback into the final hour of trading, US stocks managed to resume the advance and closed near highs for second straight session on Thursday, tracking a recovery in Asian and European stocks amid easing concerns over China and a strong US GDP revision.
The Dow Jones Industrial Average closed the day at 16,654.90 up 369.26 points or 2.27%. The S&P climbed 47.15 points or 2.43% to 1,987.66. The Nasdaq composite rose 115.17 or 2.45% to end at 4,812.71.
US GDP revision stronger-than-expected
US GDP expanded at a 3.7% seasonally adjusted annual rate in the second quarter up from the initial estimate of 2.3% growth and beating expectations of a 3.2% rise. Meanwhile, the PCE price index, the Fed’s preferred measure of inflation, rose 2.1% in the Q2 versus 2.0% expected.
As for employment, separated data showed US initial jobless claims dropped to 271K in the latest week down from 277K and versus 274K expected.
DJIA technical view
“The Dow is now above its Friday's close, finally positive in the week. Technically, the daily chart shows that the technical indicators have continued recovering ground from extreme oversold readings, but are still in negative territory, whilst the moving averages are far above the current level”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the index is biased higher, as the 4 hours chart shows that the 20 SMA is turning higher well below the current level, whilst the technical indicators maintain strong bullish slopes above their mid-lines”.
Support levels: 16,567 16,454 16,368. Resistance levels: 16,748 16,825 16,900.
The Dow Jones Industrial Average closed the day at 16,654.90 up 369.26 points or 2.27%. The S&P climbed 47.15 points or 2.43% to 1,987.66. The Nasdaq composite rose 115.17 or 2.45% to end at 4,812.71.
US GDP revision stronger-than-expected
US GDP expanded at a 3.7% seasonally adjusted annual rate in the second quarter up from the initial estimate of 2.3% growth and beating expectations of a 3.2% rise. Meanwhile, the PCE price index, the Fed’s preferred measure of inflation, rose 2.1% in the Q2 versus 2.0% expected.
As for employment, separated data showed US initial jobless claims dropped to 271K in the latest week down from 277K and versus 274K expected.
DJIA technical view
“The Dow is now above its Friday's close, finally positive in the week. Technically, the daily chart shows that the technical indicators have continued recovering ground from extreme oversold readings, but are still in negative territory, whilst the moving averages are far above the current level”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the index is biased higher, as the 4 hours chart shows that the 20 SMA is turning higher well below the current level, whilst the technical indicators maintain strong bullish slopes above their mid-lines”.
Support levels: 16,567 16,454 16,368. Resistance levels: 16,748 16,825 16,900.