The Dow Jones Industrial Average index posted a 0.39% or 109.33-point uptick on Friday as it closed at 27,875.6.
Pfizer led the gainers with a +1.56% profit for the day, followed by 3M with a 1.49% gain, and Boeing at 1.34%. On the other hand, Intel had the biggest loss at 1.05%.
The rally on Friday was driven by risk appetite as comments from US President Donald Trump renewed hopes for a trade deal. The president said that they were “very close” to reaching an agreement on phase one.
We will likely see this optimism carry over to today’s trading. Earlier this morning, the Hang Seng Index and Nikkei 225 rallied on remarks made by key officials during the weekend. U.S. national security adviser Robert O’Brien echoed Trump’s statement when he said that they could announce a portion of the trade deal by 2019.
There were also reports hinting that China is willing to make compromises in dealing with the US. The Asian economic giant announced that it may impose tougher penalties on IP theft which has been previously called for by the US.
Support at the rising trend line (connecting the lows from October 3 and October 31) held perfectly on the Dow Jones. If risk appetite continues to dominate market sentiment, the stock index could make another run up to 28,000.0 and tap new highs. On the other hand, a close below November 20 lows at 27,679.0 could mean that the Dow Jones may drop to 27,108.9 and test its previous highs for support.Download our latest quarterly market outlookfor our longer-term trade ideas.
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