DOW JONES RISES AFTER WEAK JOBS REPORT FUELS HOPE FOR A RATE CUT
DJ 30 futures are currently trading at 26038- higher by 1.35% 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 was up about 307 points, led by gains in Apple and Microsoft. U.S. equities rose today as weak economic data increased the odds of easier monetary policy from the central bank.
According to sources, market expectations for a Federal Reserve interest rate rat cut rose to 27.5% from 16.7% after the economic data release.
According to a U.S. government notice posted online, the country provided two more weeks to China’s exporters to get their products into the U.S. before increasing tariffs.
Tariff-sensitive Caterpillar and Boeing stocks advanced more than 1%. Technology companies including Apple and chipmakers, which rely on China for a large portion of their revenue, also rose today.
Meanwhile, U.S. President Donald Trump said earlier today that there was a good chance that the U.S. would be able to secure a deal with Mexico over migration. Officials from both the countries began a third day of talks in Washington on Friday.
Stocks of IBM rose 1.26% after the tech giant said on Thursday that it is laying off a small percentage of employees.
Other top gainers in the Dow Jones include Cisco Systems (up 1.79%), UnitedHealth Group (up 2.06%), and Microsoft (up 3.18%) at the time of writing.
The yield on the 10-year Treasury note fell to the lowest level since 2017. Bank stocks followed yields lower with J.P. Morgan Chase losing 0.98% at the time of writing.
The 30-stock index registered its second best day of this year on Tuesday. For the week, the DJIA is up around 2.9% and on track to snap a six-week losing streak.
On the economic front, Nonfarm Payrolls for May released earlier today came in at 75K. Payrolls number was below the market expectation of 185K. Also, Payrolls number for the prior month was revised to 224K from 263K previously reported. It was the second time in four months that job growth totaled less than 100K.
On the technical front, the RSI is currently at 59.48% 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 26020 Take Profit At 26110 Stop Loss At 25970