DJ 30 BELOW 25K AS TECH STOCKS LEADS, HOME SALES DISAPPOINT
DJ 30 futures are currently trading at 24946- lower by about 1.2% as compared to the previous close. The index futures had closed in positive territory in the last trading session. The benchmark fell on Wednesday led by declines in technology companies, as concern lingers that profit growth has peaked and tariffs weigh on optimism.
Dow-member Boeing (up 2.8%) posted better-than-expected profit and revenue before the market opened on Wednesday. The company also raised its full-year guidance on earnings and sales.
Tech stocks, fell broadly, adding to their steep losses from this month. Microsoft and Apple were down 0.95% and 0.60% respectively at the time of writing. Dow-member 3M was down 1.6% at the time of writing after it issued disappointing forecasts on Tuesday.
Other top losers in the Dow Jones include United Technologies (down 2.77%), Walt Disney (down 2.3%), IBM (down 1.09%) and Intel (down 1.2%) at the time of writing.
Among Dow constituents, Visa and Microsoft are due to report their earnings after the market close on Wednesday.
On the economic front, New Home Sales released earlier, fell to the lowest level in almost two years. New Home Sales number for Sept. came in at 553K. Sales were below the market expectation of 627K. Sales in August were revised to 585K from 629K reported earlier. In addition, Services PMI reading for October (P) also out today came in at 54.7. The PMI reading was above the expectation of 54.1 with the reading being 53.5 in the previous month.
On the technical front, the RSI is currently at 31.88% 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 25000, Take Profit At 24850 Stop Loss At 25080