Wall Street closed with benchmarks at highest levels in several weeks

• The Dow Jones Industrial Average ended the session up 0.7%.
• The Nasdaq Composite Index climbed by 0.7%.
• The S&P 500 put on 0.5%, its fifth-consecutive winning session. 

It was another day of gain on Wall Street for the benchmarks that were ending at their best levels in two months, driven by earnings and lack of bad news as investors continued to bask in the Fed put and prospects of global trade negotiations back on track towards a positive outcome.

"The US ISM services sector PMI pulled back more than expected in January, the partial government shutdown and trade frictions the main culprits. The composite index fell to 56.7 from 58, new orders showed notable slippage (-5pts to 57.7) as did export orders (-9pts to 50.5).  Markit’s final PMI for January was left unrevised at 54.2. Both surveys are off their 2018 cycle highs though remain at historically solid levels,"

explained analysts at Westpac. 

Looking ahead

The market is now looking toward some key earnings reports after the close from Chubb, Disney, and Electronic Arts. Meanwhile, President Donald Trump's State of the Union address is likely to be the main focus, as investors will look for further direction about plans to help deliver a fresh stimulus into the economy.

DJIA levels

The DJIA index continued to climb on Tuesday and is making further ground above the key 61.8% Fibo retracement of the Oct 2018 decline. The price is now well above its 100 and 200-D SMAs with RSI and MACD are continuing to lean bullish. The index is targetting a break to the Sep lows and the 76.4% Fibo of the Sep decline at 25668. However, a significant correction in the index below the 100, 200 SMAs and 61.8% fibo confluence support area will target 9th Jan swing high at 24025.