DOW JONES RISES ABOVE MA5 ON BANK EARNINGS AND GAINS IN DISNEY
DJ 30 futures are currently trading at 26393- higher by 0.92% 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 250 points as stocks of Disney and JP Morgan outperformed. U.S. equities rose today after a slew of positive corporate news that included strong bank earnings and giant deal in the energy sector.
Stocks of JP Morgan rose 4.3% after the bank reported record first-quarter profit and revenue that topped market expectations due to higher interest rates.
Disney stocks surged 9.38% after the company unveiled a streaming service at a lower price point than Netflix. The media-giant said it would launch its Disney+ a video-streaming business on 12th November for $6.99 a month. Disney contributed about 80 points to the rise in the index on Friday.
Stocks of Boeing rose 1.5% after CEO Dennis Muilenburg said on Thursday that a fix for the company’s troubled 737 MAX jet has already been tested by airlines.
Other top gainers in the Dow Jones include Goldman Sachs (up 2.44%), Caterpillar (up 1.87%), and Dow Inc. (up 5.42%) at the time of writing.
Sentiment was also lifted today by a massive deal in the energy sector. Index-member Chevron announced plans to acquire Anadarko Petroleum for $33 billion in cash and equity. The deal values Anadarko at a 37% premium from the share’s closing price on Thursday. Chevron was down 5.2% at the time of writing.
The rally in index-members put the 30-stock index on track to put in a flat performance for the week.
On the economic front, the Import Price Index (MoM) for March released earlier today came in at 0.6%. The index change was above the consensus estimates of 0.4%. Most of jump in Import prices can be due to rising fuel prices.
In addition, Michigan consumer sentiment index (P) for April also released earlier today came in at 96.9. The index reading was below the market expectation of 98.1.
On the technical front, the RSI is currently at 62.91% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is above the middle line of the Bollinger Bands and is heading upwards.
Overall Bias is Positive and Short-term trades can be initiated with tight Stop Loss and Take Profit targets.
Trade Suggestion-Limit Buy At 26385, Take Profit At 26455 Stop Loss At 26350