DOW JONES FALLS ON EARNINGS AND ECONOMIC DATA

DJ 30 futures are currently trading at 26902-lower by 0.33% as compared to the previous close. The contract, however, closed in the positive territory in the last trading session.

In the Cash Markets, the DJIA lost about 70 points at the time of writing. The broad-market index gained 0.1% on Thursday, after flipping between positive and negative territory.

U.S. equities opened lower today as market participants set to wrap up the first week of earnings.

The sentiment today was dampened by weak economic data from China.

China today posted its weakest quarter of economic growth in more than 27 years, dragged down by a trade war with the U.S. The YoY rate of change in the Chinese GDP was +6.0% for the third quarter. The GDP growth was below the market expectation of 6.1%.

Stocks of American Express dropped 1.45% despite the company reported third-quarter EPS and revenue above the consensus estimates.

Johnson & Johnson fell 3.45% after the company said earlier today that it is recalling about 33K bottles of baby powder in the U.S. after the country’s health regulators found trace amounts of asbestos in samples taken from a bottle.

Other top losers in the Dow Jones include Dow (down 0.42%), International Business Machines (down 1.45%), and Boeing (down 0.72%) at the time of writing.

The 30-stock index was up 0.8% for the week through Thursday’s close.

On the economic front, CB Leading Index (MoM) for September released earlier today came in at -0.1%. The index change was below the consensus estimates of a rise of 0.2%.

On the technical front, the RSI is currently at 55.59% and suggests that the market can move in the downward direction. The current price is above 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 26910, Take Profit At 26810 Stop Loss At 26960

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