DOW JONES WOBBLY ON STRONG DATA AND TRADE TENSIONS
DJ 30 futures are currently trading at 25806- lower by 0.26% as compared to the previous close. The contract, however, closed in the positive territory in the last trading session.
In the Cash Markets, the DJIA rose about 24 points at the time of writing. On Thursday, the broad-market index rose about 215 points.
U.S. equities today recovered from early losses as robust economic data and the removal of some tariffs offset broader Sino-U.S. trade tensions.
According to market sources, the U.S. is poised to remove tariffs on steel and aluminum imports from Mexico and Canada.
Trade concerns were also partially eliminated after the U.S. government announced it would delay imposing tariffs on foreign-made cars by six months.
Meanwhile, China’s ruling Communist Party’s People’s Daily wrote in a front-page commentary that the trade dispute will only make the country stronger and will never bring it to its knees.
Index-member Boeing rose 0.95% after announcing the completion of its updated software for the troubled 737 MAX jet on Thursday.
Other top gainers in the Dow Jones include Cisco Systems (up 1.43%), UnitedHealth Group (up 2.27%), and Verizon communications (up 1.41%) at the time of writing.
Energy shares inched down 0.6% today as oil prices dropped. Chevron and ExxonMobil lost 0.11% and 0.37% respectively at the time of writing.
Technology companies including Apple and chipmakers, which rely on China for a large portion of their revenue, were dropped today. Apple declined 0.16% also weighed down by Nomura Instinet’s price target cut on its share.
The 30-stock index is on track for a weekly decline of 1%.
On the economic front, the University of Michigan’s consumer sentiment index for May released earlier today came in at 102.4. It was the index’s highest level in 15 years. The index reading was also above the market expectation of 97.2.
On the technical front, the RSI is currently at 45.59% and suggests that the market can move in the upward direction. The current price is above the MA5. The current price is below the middle line of the Bollinger Bands but 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 25790, Take Profit At 25890 Stop Loss At 25740