DOW JONES INCHES DOWN ON WEAK EARNINGS REPORTS; JOBLESS CLAIMS FALL

DJ 30 futures are currently trading at 27109- lower by 0.48% as compared to the previous close. The contract closed in the negative territory in the last trading session also.

In the Cash Markets, the DJIA inched down 0.47% to 27,141.11 at the time of writing. U.S. equities dropped today as technology stocks led a broad market decline.

The markets also pored through comments from the European Central Bank President. The President said that there was not a significant risk of a recession in the region. Futures on major U.S. indices dropped on the remarks.

Stocks of Boeing were battered again today after the company reported weaker-than-expected earnings and revenue in the previous session.

Stocks of Dow Inc. plunged 3.45% after the company issued weaker-than-expected revenue guidance for the third quarter. The chemical company expects sales to range between $10.5 billion and $11 billion. Sales forecast was below the market expectation of $12.03 billion.

3M declined 1.01% despite reporting a higher-than-expected quarterly profit before the market opened on Thursday. The company also maintained its full-year outlook as it fought the impact of slowing global growth.

Bank shares were also trading lower on Thursday. Goldman Sachs and JP Morgan Chase lost 1.45% and 1% respectively at the time of writing.

Other top losers in the Dow Jones include Coca-Cola (down 1.52%), Intel (down 1.56%), and Cisco Systems (down 1.23%) at the time of writing.

Index member Intel is scheduled to report its second-quarter fiscal 2019 earnings after the close Thursday.

On the economic front, Core Durable Goods Orders for June released earlier today rose 1.2% on a month-on-month basis. Orders growth was above the consensus estimates of 0.2%.

In addition, Initial Jobless Claims released earlier today fell to 206K in the week ended 20th July from 216K in the week prior. Claims figure was also below the market expectation of 220K.

On the technical front, the RSI is currently at 55.14% 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 27130, Take Profit At 27040 Stop Loss At 27175

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