• The Nasdaq Composite COMP dropped 0.5% to end around 7,797.
  • The S&P 500 fell to around 2,887
  • DJIA lost less than 0.1%, to finish near 26,090.

Wall Street ended lower on Friday, although higher for the week. President Trump's renewed criticism of the Fed had little impact, but U.S, data was solid enough to keep spirits up for the week – For the week, S&P was up 0.5%, the Dow was up 0.4% and the Nasdaq was up 0.7%. However, stocks struggled on the last day of trade and the S&P 500 fell to around 2,887 while the Dow Jones Industrial Average DJIA lost a modest 17 points, or less than 0.1%, to finish near 26,090. The Nasdaq Composite COMP dropped 0.5% to end around 7,797.

Key U.S. data

Retail sales came in largely in line with expectations, advancing 0.5% m/m (mkt: 0.6%, TD: 0.8%). "Importantly, revisions were significant to the upside, with headline sales jumping to 0.3% in April (up from -0.2%), and the control group's to 0.4%, up from flat before. In the details, the May increase was led by a solid gain in control group sales at 0.5% and by a 0.7% increase in auto sales. All in, a positive report suggesting consumer spending remains upbeat in Q2. Similarly, industrial production advanced a strong 0.4% in May (mkt: 0.2%, TD: 0.1%). IP rebounded from an upwardly-revised large 0.4% contraction in April. Manufacturing activities (+0.2%) and utilities (2.1%) were the key drivers of IP growth during the month," analysts at TD Securities explained.

DJIA levels

For the DJIA, the technical outlook is sideways with the price continuing to hold above the 61.8% Fibo retracement level of April to June swing highs and lows. The 78.6% mark in the 26200s with a confluence of the 12th April gap the prior day is a key upside objective. However, a break below the 20-D EMA that is located just below the 50% Fibo of the recent daily range is guarding a run towards the 200 D EMA and then the 25200 level, as being around the 11th March swing lows. 25000 guards a run towards 24500s and then 50% of the upside run made at the end of Dec at 24150.