DOW JONES RISES ON TRADE HOPES; INDUSTRIAL PRODUCTION DISAPPOINTS
DJ 30 futures are currently trading at 25761- higher by 1.39% as compared to the previous close. The contract, however, closed in negative territory in the last trading session.
In the Cash Markets, the DJIA was up 0.87% at the time of writing. The broad-market index rose today as Goldman Sachs and J.P. Morgan Chase outperformed. U.S. equities gained today amid increasing hopes for a U.S.-China trade deal as equities were on pace to post another solid weekly gain.
Bank stocks also gained on Friday. The SPDR S&P Bank ETF (KBE) rose 2%. Goldman Sachs and J.P. Morgan Chase advanced 2.82% and 3.01% respectively at the time of writing.
China’s President Xi Jinping said trade talks between the U.S. and China will continue next week in Washington. This comes after a U.S. trade delegation led by Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer was in Beijing this week.
Senate Majority Leader Mitch McConnell said on late Thursday that the U.S. President will sign a spending bill to keep the government open, but also declare a national emergency at the border to get wall funding, which may set him up for a showdown with Congress.
Other top gainers in the Dow Jones include Boeing (up 1.44%), United Technologies Corp. (up 2.57%), and McDonald’s Corp. (up 1.93%) at the time of writing.
The 30-stock index was on pace to post its eight consecutive weekly gain. The index was up around 2.5% for the week.
On the economic front, Industrial Production (MoM) for January released earlier today came in at -0.6%. The Production change was below the market expectation of a growth of 0.1%. The Federal Reserve said today that the industrial production fell in January for the first time in eight months. In addition, the NY Empire State Manufacturing Index for February also out today came in at 8.80. The index reading was above the market expectation of 7.10.
On the technical front, the RSI is currently at 69.91% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the upper band of the Bollinger Bands and is heading upwards.
Overall Bias is Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Buy At 25730, Take Profit At 25850 Stop Loss At 25670