DJ 30 RISES ABOVE MA5 ON TRADE OPTIMISM AND PAYROLLS
DJ 30 futures are currently trading at 26433- higher by 0.17% as compared to the previous close. The contract closed in the positive territory in the last trading session also.
In the Cash Markets, the DJIA rose 32 points as stocks of Walgreens Boots Alliance and Pfizer outperformed. U.S. equities rose today after a better-than-expected U.S. jobs report eased concerns that the economy was slowing down, lifting investor sentiment.
The index was up more than 1.5% through Thursday’s close for the week.
Stocks got a boost this week as China and the U.S. appeared to make progress in trade negotiations. Chinese Vice Premier Liu He said that a new consensus had been reached between Beijing and Washington on trade.
Also, U.S. President Donald Trump said on Thursday that a deal could be announced in the next four weeks. President Trump, however, warned it would be difficult to let China trade with the U.S. if remaining issues were not resolved.
Technology sector companies on the index rose on Friday, with Apple Inc. rising 0.40% and Microsoft Corp. advancing 0.33% at the time of writing.
Other top gainers in the Dow Jones include Walgreens Boots Alliance (up 1.12%), Pfizer (up 0.76%), and Chevron (up 1.41%) at the time of writing.
On the other hand, Boeing fell 0.8% after UBS cut its price target on the planemaker’s stocks and said the preliminary Ethiopian report pointed to the MCAS anti-stall software as a common contributor to the recent fatal crashes.
Intel fell 1.80% after Wells Fargo downgraded it to market perform from outperform, citing weakening 2019 demand along with rising competition from Advanced Micro Devices.
Bank stocks, which tend to benefit from a rising interest rates, slipped 0.19% on Friday.
Dow Inc. fell 3.53% after J.P. Morgan started coverage on the company, which was spun-off from DowDuPont Inc, with an underweight rating.
As of Thursday, the DJIA stood less than 2% away from its record close at 26,828.39 that was put in on 3rd October.
On the economic front, Nonfarm Payrolls for March earlier today came in at 196K. Payrolls number was above the market expectation of 175K. Also, Payrolls number for the prior month was revised to 33K from 20K previously reported.
On the technical front, the RSI is currently at 66.85% and suggests that the market can continue trading sideways. The current price is above the MA5. The %K has crossed %D from below to the upside at around 42% and this suggests that the market can move in the upward direction.
Overall Bias is Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Buy At 26420, Take Profit At 26500 Stop Loss At 26380