The Dow Jones Industrial Average finished Monday slightly higher at 27,691.49 recording a measly 0.04% gain to start the week.
It was a tumultuous trading day with the Dow reaching a low of 27,518.90 after it opened with a weekend gap at 27,580.70. Concerns stemming from mounting tensions in Hong Kong dragged the equities index lower along with other markets. News broke out over the weekend that a person had died and a few others were injured amidst the protests.
Aerospace company Boeing drove the Dow Jones Industrial index into positive territory. It announced yesterday that it would soon resume deliveries of the Boeing 737 Max by December as it anticipates its certification to be cleared by the Federal Aviation Administration. Consequently, the stock rose 3.2% to 362.28 which also drove the Dow higher as investors remained cautious of global risks.
With that said, the equities market will likely take its cue from US President Donald Trumps speech today. He is scheduled to speak at 5:00 pm GMT at the Economic Club of New York. Last week, risk aversion dominated market sentiment when Trump warned that nothing has been agreed on the US-China trade deal. This sparked concerns among investors and triggered a flight to safe haven assets because Beijing initially claimed that the US will soon rollback its tariffs on Chinese goods.
If Trump makes any remark on the lack of progress of their trade negotiations, we could see support around the highs of November 5 at 27,551.00 break. The Dow Jones Industrial Average could tumble to its September 19 highs at 27,264 and test the 100 SMA. On the other hand, more clarity on the trade deal could once again spark risk appetite and drive the index to new highs beyond 27,800.00.Download our latest quarterly market outlook for our longer-term trade ideas.