S&P 500 Clears Resistance; EU, Japan Reach Free-Trade Deal

U.S. stock indexes took out some resistance areas Tuesday, as more bulls got on board with the uptrend. Meantime, the European Union and Japan forged a free-trade pact that will eliminate 94% to 99% of tariffs.


The Nasdaq gained 0.6% for the day, erasing an early 0.7% loss. The S&P 500 added 0.4%, while the Dow Jones industrial average tacked on 0.2%. The small-cap S&P 600 advanced 0.6%.

Volume inched up on both major exchanges, according to preliminary data.

The S&P 500 ended at 2809 and climbed above the 2800 level, an area that served as resistance in March and June. The Dow padded its standing above 25,000. The Nasdaq punched to a new high.

Action in other respects was quiet Tuesday. Only two stocks with Composite Ratings of 90 or better broke out, according to IBD’s pattern-recognition technology.

The Composite Rating, easily seen for all stocks in IBD Stock Checkup, combines all five IBD ratings into a single number. A rating of 90 puts a stock in the top 10% of all the stocks in IBD’s database.

Business communications software firm RingCentral (RNG) coasted ahead 3% to clear an 80.80 buy point. The consolidation is a double-bottom base. The double-bottom base is shaped like a W, with the middle peak in between the two sell-offs acting as the buy point. RingCentral has a Composite Rating of 97.

Cloud-based business software provider Mindbody (MB) popped almost 3%. The stock rose above a 43.45 buy point in an awkward-looking consolidation. Mindbody has a Composite Rating of 95.

Cars Outperform

Among IBD’s 197 industry groups, the best performers Tuesday were carmakers, homebuilders and chip equipment firms.

Car stocks moving up in volume included Fiat Chrysler (FCAU), up 1.5%; Nissan (NSANY), up 0.9%; and Honda Motor (HMC), up 1.8%.

The Anti-Trump Pact

In the news, Japan and the European Union announced an agreement to eliminate 94% to 99% of the tariffs they slap on each other. For the free-trade camp, this was the best news in a long time.

President Trump has been pushing protectionist measures, and other countries — notably China — have been pushing back with tariffs of their own.

The pact between Europe and Japan shows that countries and regions don’t have to get on the fear and belligerence bandwagon. Confidence and competition offer a wiser path.

Japan and the 28 nations of the EU account for about a third of global GDP.

(For updates on this story and other market coverage, check IBD’s stock market news today.)


IBD Stock Of The Day

Saucer Base Can Take A Long Time To Form

Take The Profit Or Hold? Here Are Some Guidelines

How To Make Money In Stocks By Spotting This Key Chart Pattern

Source link

Originally posted 2019-09-19 23:17:28.


No comments.

Leave a Reply

error: Content is protected !!