DJ 30 WOBBLY ON PMI & SINO-US TRADE TENSIONS
DJ 30 futures are currently trading at 24450- lower by 0.35% as compared to the previous close. The contract, however, closed in positive territory in the last trading session.
In the Cash Markets, the DJIA inched down 0.58% at the time of writing. The broad-market index opened lower today after Commerce Secretary Wilbur Ross said China and the U.S. were not close to striking a trade deal.
Investors also kept an eye on Washington as the U.S. government shutdown entered its 34th straight day. House Speaker Nancy Pelosi said on Wednesday that Democrats would block President Trump from delivering his State of the Union address until the government reopened.
Index-member IBM was down 0.43% despite giving strong 2019 guidance on continued strength in its services business on Tuesday. United Technologies fell 1.5% despite beating earnings and revenue expectations on Wednesday.
Other top losers in the Dow Jones include Coca-Cola (down 1.55%), Merck & Co Inc. (down 3.2%), and Apple (down 1.1%) at the time of writing.
Index-member, Intel is scheduled to report its quarterly results after the market close today. Stocks of Intel Corp. shot up 3.5% in midday trade Thursday, amid growing optimism over the company’s fourth-quarter results, given upbeat earnings reports from a number of fellow semiconductor companies.
On the economic front, the Manufacturing PMI (Preliminary reading) for January released earlier today came in at 54.9. The index reading was above the market expectation of 53.5. In addition, Weekly jobless claims released earlier today fell to 199,000 last week. It was their lowest reading in 49 years.
On the technical front, the RSI is currently at 58.93% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is above the middle line of the Bollinger Bands but 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 24550, Take Profit At 24350 Stop Loss At 24650