Trade talks, US economic data to steer stocks this week
If negotiations in Beijing break down, a big sell-off would be likely, a prospect not helped by lacklustre earnings
Add BT as a preferred sourceTRADE talks between China and the US seem to have stalled last week, causing the stock market rally to do the same.
Still, in a late recovery on Friday, broad indexes kept their winning streak alive, completing a seventh straight week of gains. This week, a US delegation's visit to Beijing and economic data, whose release was delayed by the government shutdown, will decide whether the rally can resume.
The Dow Jones Industrial Average spent most of the week bouncing around the 25,000 level. According to strategists, the rally broke down here for two reasons. Not only is the level significant as a round number but it's also close to the index's 200-day moving average, a level that's used as a buy-and-sell signal by technical traders.
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