Dow Futures Rise 345 Pts; Hopes for Upbeat Corporate Earnings
U.S. stocks are seen opening firmly higher Tuesday, continuing the previous session’s strong gains amid hopes upbeat corporate earnings would help lift the current economic gloom.
At 07:00 ET (11:00 GMT), the Dow Futures contract was up 345 points or 1.2%, S&P 500 Futures traded 50 points or 1.3% higher, and Nasdaq 100 Futures climbed 175 points or 1.6%.
The main U.S. equity indices posted a strong winning day Monday, with the blue-chip Dow Jones Industrial Average gaining over 550 points or 1.9%. The broad-based S&P 500 recorded a 2.7% gain, and the tech-heavy Nasdaq Composite rose 3.4%, its best daily performance since July.
This is a busy week for earnings, with more than 60 S&P 500 companies on deck to report.
The Bank of America’s monthly global fund manager survey stated Tuesday that 83% of investors expect global profits to worsen over the next 12 months. A net 91% said global corporate profits are unlikely to rise 10% or more in the next year, the most since the global financial crisis, with a net 49% of participants underweight equities.
Investors have been worried that the Federal Reserve’s war against inflation will hurt the U.S. economy. This means expectations are low for the September-quarter earnings season, suggesting potential upside for shares of companies that do come in ahead of analysts’ estimates.
DOW JONES Technical Analysis: Daily Chart
In the daily charts, DOW JONES is trading in an up channel. DOW JONES is currently trading below 100 days SMA & above 20 and 50 days SMA.
RSI is in buying zone which indicates bullishness. MACD is currently above zero which indicates bullishness.
Its immediate support is 30496.00 & the resistance level is at 31003.00.
DOW JONES INDEX will trade in an up channel until there is trend reversal.
How to Trade DOW JONES INDEX this Week:
DOW JONES INDEX will follow the uptrend until there is trend reversal. So, remain bullish on DOW JONES INDEX.