Investors evaluate first-quarter earnings and retail sales data as the Dow slightly declines
Investors evaluated corporate results that came in stronger than anticipated as well as a disappointing retail sales report on Friday, which caused the Dow Jones Industrial Average to decline.
Dow Jones dropped 18 points, or 0.05%, on 30 stocks.
In their first earnings season following the failure of Silicon Valley Bank and Signature Bank last month, major banks posted better-than-expected results. With the stock soaring more than 5%, JPMorgan Chase posted record revenue that exceeded analyst estimates. Wells Fargo shares rise 0.6% after the bank reported rising profits.
Consumer purchasing declined in March, according to recent retail sales figures, as consumers dealt with growing recession fears and financial instability.
Retail sales dropped by 1% in March, which was more than the 0.5% drop predicted by economists surveyed by Dow Jones. Since November, this number represented the worst month-over-month reading.
“The data over the past two weeks have not surprised, but financial markets are still in limbo when it comes to the central bank’s upcoming actions.”
“Overall, the incoming US data show that price and production pressures are slowing but are still too high for comfort,” the author continued. “However, the Fed’s hopes for a soft landing are still a possibility as the stress related to the banking industry appears to have subsided for the time being.”
“While the release of the Fed’s minutes shows a central bank that was uncertain in light of the recent banking turmoil, in light of the incoming data markets now expect above 50% chance for a 25bp rate hike in May and around three 25bp rate cuts after the summer,” Cekov added.
DOW JONES TECHNICAL ANALYSIS DAILY CHART:
Dow Jones is currently trading in up channel.
Dow Jones is currently trading above all SMA.
RSI is in buying zone which suggests bullishness and Stochastic is suggesting up trend.
Immediate resistance is at 34003.25 & its immediate support level is 33892.66
HOW TO TRADE DOW JONES IN THIS WEEK
Dow Jones is currently moving up in a channel, but it is currently trading at an important support zone, if it breaks the support zone and maintains below it, we may experience a downside.
