DJ 30 SURGES ON STRONG EARNINGS & INDUSTRIAL PRODUCTION
DJ 30 futures are currently trading at 25558- higher by about 1.48% as compared to the previous close. The index futures had closed in negative territory in the last trading session. The benchmark index opened higher on Tuesday, led by technology stocks, as upbeat earnings from blue-chip companies helped ease jitters over the impact of an ongoing U.S.-China trade war and other global issues on corporate profits.
Among index constituents, Goldman Sachs outperformed after the market open on Tuesday. Goldman Sachs’ profits beat estimates, sending the stock up 1.4% (at the time of writing). Other Dow-members Johnson & Johnson and UnitedHealth both posted better-than-expected earnings. Both added more than 2.75% at the time of writing. Dow-component, Walmart slashed its fiscal 2019 earnings forecast on Tuesday, citing its Flipkart acquisition. The stock is however up 1.6% at the time of writing.
Other top gainers in the Dow Jones include Microsoft (up 1.64%), Walt Disney (up 1.31%), Visa (up 1.64%) and Intel (up 1.4%) at the time of writing.
On the economic front, Industrial Production (MoM) for Sept. released earlier came in at 0.3%. The Production growth was above the expectation of 0.2%. The Industrial Production growth in August was 0.4%. In addition, JOLTs Job Openings for August also released today came in at 7.136M. Openings were above the expectation of 6.945M. The revised number of Openings in July were 7.077M. Manufacturing Production (MoM) for Sept. also released earlier came in at 0.2%. The Production growth was in line with market expectation.
The major names which are scheduled to report their earnings after the market close on Tuesday are Netflix, BHP Billiton, and ADTRAN.
On the technical front, the RSI is currently at 37.4% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is below the middle line of the Bollinger Bands but is heading upwards.
Overall Bias is Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Buy At 25500, Take Profit At 25640 Stop Loss At 25430