Nasdaq
The Dow Jones Industrial Average Index rose above the 28,000 psychological handle yesterday as positive US data affirmed optimism for the US economy. It closed 42.3 points or 0.15% higher at 28,164.0.
Apple led gains when it posted a 1.34% uptick at 267.84 followed by McDonald’s with a 1.18% gain at 196.30. On the other hand, Boeing led losses, declining by 1.48% at 368.00.
Better-than-expected US GDP primarily fueled the rally across the equities market. The first reading of the third quarter GDP report came in yesterday at 2.1% versus the market consensus of 1.9%. Durable goods orders also topped expectations while unemployment claims printed lower than anticipated.
Can the Dow Jones sustain its rally?
There are a few concerns that it may not. US President Donald Trump has just signed the Hong Kong rights bill into law. Last week, China has warned that it could retaliate by imposing its own tariffs if the US keeps on meddling with its affairs. If you remember, civil unrest in Hong Kong were driven by pro-democracy protesters who want to maintain the city-state’s independence from mainland China.
If this proves to be true and risk aversion does weigh on the index, we could see it trade lower to test support around the rising trend line at 27,928.0.
On the other hand, if risk appetite continues to dominate, the Dow Jones could aim for your historic highs beyond 28,000.0.Download our latest quarterly market outlook for our longer-term trade ideas.