DOW JONES RISES ABOVE MA20 ON ROBUST GDP DATA
DJ 30 futures are currently trading at 26471-higher by 0.21% as compared to the previous close. The contract, however, closed in the negative territory in the last trading session.
In the Cash Markets, the DJIA was up about 26 points at the time of writing. U.S. equities fell today as traders weighed strong economic data against a mixed batch of quarterly earnings.
Index-component Exxon Mobil Corp fell 2.94% after reporting quarterly EPS that was below the market expectation. The company’s results were below expectations due to poor performances in its refining and chemicals businesses.
Intel plunged 10.07% after it slashed its full-year revenue forecast and missed quarterly sales estimate for its key data center business. Its results hit other chipmakers also. The Philadelphia chip index was down 1.52% with the broader technology sector falling 0.67% at the time of writing.
Index-member Chevron fell 1.47% after missing revenue estimates for the first quarter. The company’s profit fell due to lower oil prices and weak profit margins in its refining and chemicals business.
On the other hand, Walt Disney Co added 1.55% after Marvel Studios superhero spectacle “Avengers: Endgame” hauled in a record $60 million at Canadian and US box offices during its Thursday night debut.
Other top gainers in the Dow Jones include Procter & Gamble (up 2.28%), Caterpillar (up 1.65%), and UnitedHealth Group (up 2.47%) at the time of writing.
The 30-stock index is on track to post a loss of 0.4% for the week.
On the data front, the first estimate of the US GDP for the first quarter was released on Friday. The QoQ rate of change in the GDP was +3.2%. The GDP growth was above the market expectation of 2.0%. Rise in exports drove the increase in GDP.
In addition, Michigan consumer sentiment index for April also released today came in at 97.2. The index reading was above the market expectation of 97.1.
On the technical front, the RSI is currently at 57.39% and suggests that the market can move in the upward direction. The current price is below the MA5. The current price is above the middle line of the Bollinger Bands and is heading upwards. The current price is above the MA20.
Overall Bias is Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Buy At 26455, Take Profit At 26535 Stop Loss At 26415