US stocks modestly rise, but show little conviction, after Fed’s beige book report, Obama’s speech and consumer credit data.
DJIA gains 46, or 0.5%, to 10387, and has risen five times in last six days. But Newswires columnist Tomi Kilgore finds some reason for caution:
The DJIA might look strong, since it has held onto most of its gains throughout the day, but the inability to get through resistance after a third attempt should put bulls on edge. The DJIA’s intraday high is 10427, following highs of 10447 and 10451 the past two sessions. Meanwhile, the 200-day moving average has been coming in right around 10450. The DJIA was recently up 40 at 10381. If the DJIA can’t get above the 200-day tomorrow, a test of the 50-day moving average, which comes in around 10286, should follow shortly. Meanwhile, a close above the 200-day would target the Aug. 9 high of 10720.
Meanwhile, S&P 500 gains 7, or 0.6%, to 1099, yet still can’t shake the psychologically-significant 1100 level. Nasdaq Comp jumps 20, or 0.9%, to 2229. Volume was weak again.
Encouraging developments from European banks helped shed yesterday’s pessimism. But Fed says economy hit soft patch in July and through August and Obama introduces new policies to kick start economy. Consumer credit in July also dropped for sixth-straight month.