DJ 30 BEARISH ON MIXED RESULTS, WEAK PHILLY FED
DJ 30 futures are currently trading at 24897- lower by about 0.70% as compared to the previous close. The index futures have been continuously closing in the negative territory since the last 3 trading session.
U.S. shares opened lower today, with hopes of a trade negotiation between the US and China being offset by mixed results from retailers and a slide in growth stocks.
In the cash markets, the DJIA fell more than 100 points during early deals as Amazon and Walmart led a slide in consumer discretionary-related stocks.
Index-member Walmart’s mixed results weren’t enough to offset investor angst following news that renowned investor Warren Buffett disposed of his stake in the retail giant. The stock was down 0.8% despite the company reported strong e-commerce sales.
Another Index-constituent Cisco was up 4.2% after the company beat on both the top and bottom lines for the first fiscal quarter results. The tech-giant reported that its revenue rose 7.7%, as it takes action to mitigate the impact of any future impact from the US administration’s trade dispute with China.
Other top losers in the Dow Jones include Nike (down 1.8%), Chevron (down 1.5%), Home Depot (down 1.3%) and ExxonMobil (down 1.2%) at the time of writing.
On the data front, Core Retail Sales (MoM) for Oct. released earlier came in at 0.7%. Sales growth was above the consensus estimates of 0.5% with a 0.1% decline in Sales seen in the previous month. In addition, the Philadelphia Fed Manufacturing Index for Nov. also out today came in at 12.9. The index reading was below market expectations of 20.7 with the index reading being 22.2 in the previous month.
On the technical front, the RSI is currently at 39.24% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards.
Overall Bias is Negative and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Sell At 24920, Take Profit At 24720 Stop Loss At 25020