Wall Street Under Pressure Amid Low Oil Prices, Disappointing Earnings
US indexes closed slightly lower, with the DJIA down by 41 points and ending the day at 17,581.43. The Nasdaq lost 4 points, whilst the S&P closed 0.26% lower.
Lower oil prices and disappointing earnings reports dragged Wall Street lower, with investors already being in cautious mode ahead of the FED’s meeting outcome. Car maker Ford plunged over 4% after reporting quarterly earnings below market’s forecast, attributing the slide to higher taxes.
Also, weaker-than-expected US data weighed on investors sentiment, which stayed side-lined, ahead of any rate move clue. The Dow daily chart shows that, despite setting a lower low for the week, the index remains within its latest range, near the fresh 2-month high set late last week. Also, the index stands well above its 200 DMA, whilst the technical indicators have turned flat well above their mid-lines, maintain the risk towards the upside.
In the 4 hours chart, however, the upward potential has lost part of its steam, as the Momentum indicator heads lower below its 100 level, albeit the RSI indicator maintains a bullish slope around 66 and the index struggles around a bullish 20 SMA. The index needs to break above 17,682 the mentioned high, to be able to extend its rally, with buyers still seeing on dips towards the 17,550/70 region.