Dow Jones Industrial Average continues to rise on low-impact Thursday

  • The Dow Jones rose another 350 points on Thursday, gaining 0.8%.
  • Markets are grappling with the lack of meaningful data hitting the buy button.
  • US PMI numbers loom on Friday, but Trump headlines dominate.

The Dow Jones Industrial Average (DJIA) continued its steady drift toward the upper end on Thursday, gaining 0.8% and adding about 350 points to the total, as investors generally lean toward a risk-on stance. United States (US) President Donald Trump took the opportunity to air some of his economic grievances during an appearance at the annual World Economic Forum (WEF) held in Davos, Switzerland. Investors dismissed most of the president’s structural inconsistencies, although his remarks about demanding lower crude oil prices attracted some attention from commodity markets.

Thursday’s economic data agenda was thin, giving investors little to chew on except political headlines from the new resident of the White House. US S&P Global Purchasing Managers’ Index (PMI) figures will be released on Friday, and are expected to be mixed. However, PMI prints are unlikely to have any significant impact unless the final numbers deviate sharply from market expectations.

President Donald Trump lashed out on a wide range of issues during his appearance at the WEF’s annual meeting in Switzerland, colloquially known as Davos, the city that hosts the forum each year. President Trump reminded all listeners that he intended to “wipe out” the US budget deficit, while somehow convincing the US Congress to pass “the largest tax cut in US history.” United” at the same time.

Also on President Trump’s agenda was the issue of crude oil prices, which he intends to ask the Organization of the Petroleum Exporting Countries (OPEC) to find a way to reduce, prompting a rapid sell-off. in barrel offers. OPEC has historically been known for its efforts to increase or stabilize crude oil prices, and it remains unclear how the world’s largest crude oil cartel would react or even comply with the request.

President Trump also reiterated his offer for Canada to become a US member state, stating that the current US trade deficit with Canada, which currently represents about 4% of the total US trade deficit .US, it is unsustainable. President Trump also issued a veiled reminder of possible plans for tariffs on EU goods imported into the US in retaliation for the EU’s “very poor” treatment of the US.

Dow Jones News

Most stocks listed on the Dow Jones are drifting toward the higher end on Thursday as investors lean toward a general improvement in risk appetite. The Travelers Companies (TRV) retreated 1.8% to lead the handful of losers in the red, falling to $242 per share as investors took profits following this week’s better-than-expected rise in revenue. Caterpillar (CAT) rose 2.6%, hitting $408 per share and touching its highest bids since last November.

Dow Jones Price Forecast

Thursday’s gains put the Dow Jones Industrial Average on track to close in the green for a fifth straight session, and the major stock index has gained ground in all but one of the last nine consecutive trading days. Bullish momentum is advancing towards all-time highs just north of 45,000, but first bidders will need to rally above the 44,800 level.

The price action has firmly extended beyond the 50-day EMA near 43,230, and the Dow Jones’ long-term trend of breaking above the 200-day EMA remains firmly in place. A pattern of higher lows is also firmly embedded in the chart, and traders waiting for signals to go short will be forced to stay on the sidelines for the time being.

Dow Jones Daily Chart

Dow Jones FAQs


The Dow Jones Industrial Average, one of the world’s oldest stock indices, is made up of the 30 most traded securities in the United States. The index is weighted by price rather than capitalization. It is calculated by adding the prices of the securities that comprise it and dividing them by a factor, currently 0.152. The index was founded by Charles Dow, also founder of the Wall Street Journal. In recent years it has been criticized for not being sufficiently representative, since it only follows 30 companies, unlike broader indices such as the S& P 500.


There are many factors that drive the Dow Jones Industrial Average (DJIA). The main one is the aggregate performance of its component companies, revealed in quarterly corporate earnings reports. US and global macroeconomic data also contribute, influencing investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA, as it affects the cost of credit, on which many companies largely depend. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.


The Dow Theory is a method for identifying the main trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where they are both moving in the same direction. Volume is a confirmation criterion. The theory uses elements of maximum and minimum analysis. The Dow theory proposes three phases of the trend: accumulation, when the smart money begins to buy or sell; public participation, when the general public joins the trend; and distribution, when the smart money abandons the trend.


There are several ways to trade the DJIA. One of them is to use ETFs that allow investors to trade the DJIA as a single security, instead of having to buy shares of the 30 companies that comprise it. A prominent example is the SPDR Dow Jones Industrial Average ETF (DIA). Futures contracts on the DJIA allow traders to speculate on the future value of the index, and options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds allow investors to purchase a portion of a diversified portfolio of DJIA securities, providing exposure to the global index.

Source: Fx Street

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