DOW JONES INCHES UP AS BANKS STOCKS GAIN; GDP MEETS EXPECTATIONS
DJ 30 futures are currently trading at 26573- higher by 0.21% as compared to the previous close. The contract closed in the positive territory in the last trading session also.
In the Cash Markets, the DJIA rose about 40 points at the time of writing. U.S. equities were modestly higher today, supported by financials, but caution reigned in the build-up to Sino-U.S. trade talks at the G20 summit this weekend.
U.S. President Donald Trump and his Chinese counterpart Xi Jinping are scheduled to meet at the G-20 summit in Japan on Saturday. The two leaders are expected to discuss trade and an agreement between them would help avoid next round of tariffs on an additional $300 billion of Chinese imports.
Meanwhile, The Wall Street Journal reported that President Xi Jinping is expected to present President Donald Trump with the terms China expects the U.S. to meet before Beijing is willing to settle the ongoing trade dispute.
Investors are looking ahead to the meeting to get clues on whether both the countries can make progress towards ending their ongoing trade dispute.
Index-member Walgreens stocks surged 4.55% after the company reported better-than-expected quarterly results, due to higher prescription drug sales.
Stocks of Travelers inched up 0.46% despite a rating downgrade at Deutsche Bank.
Bank shares rose today ahead of the Federal Reserve’s stress-test results release, which is scheduled for later today. Goldman Sachs and JP Morgan Chase gained 1.24% and 0.53% respectively at the time of writing.
Other top gainers in the Dow Jones include UnitedHealth Group (up 1.65%), Dow (up 1.09%), and Pfizer (up 1.12%) at the time of writing.
On the other hand, stocks of Boeing dropped 2% after the FAA said on Wednesday that it has found an issue with the 737 Max that the company must address before it removes the national grounding orders.
On the economic front, the final estimate of the US GDP for the first quarter was released on Thursday. The QoQ rate of change in the GDP was +3.1%. The GDP growth was in line with market expectations.
In addition, Initial Jobless Claims released earlier today rose to 227K in the week ended 22nd June from 217K in the week prior. Claims figure was above the consensus estimates of 220K.
On the technical front, the RSI is currently at 61.94% 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 26600, Take Profit At 26510 Stop Loss At 26645