Dow Jones Industrial Average stumbles Tuesday as heavyweights retreat

• The Dow Jones falls while other indices gain ground.
• The DJIA is dragged down by sharp declines in large caps.
• US data softened modestly on Tuesday, but not enough to quell rate cut hopes.

He Dow Jones Industrial Average (DJIA) lost weight on Tuesday, falling about 300 points as heavyweights like Home Depot Inc. (HD) and Walmart Inc. (WMT) dragged the major industrial index into the red. U.S. stocks are gaining ground on a mixed index performance, with losses concentrated in key Dow Jones stocks.

The CB Consumer Confidence survey index fell to 100.4 in June, from the previous value of 102.0, but falling slightly short of the expected drop to 100.0. The Richmond Fed Manufacturing Index fell sharply to -10.0 in June, well below the forecast rise to 2.0 from 0.0 previously.

Financial markets generally expect mildly weakening economic numbers from the US and will be closely watching the US Durable Goods, Gross Domestic Product (GDP) and Personal Consumption Expenditure (PCE) Price Index data. , all scheduled for release in the second half of the trading week beginning Thursday. Tuesday’s mid-level releases were not enough to spark firm market flows in either direction.

According to the CME’s FedWatch tool, rates markets continue to price in around a 66% chance of at least a quarter-point rate cut by the Federal Reserve (Fed) in September. Rate cut-hungry investors are running out of room to wait for a slowdown in US economic numbers to trigger an early rate cut by the Federal Open Market Committee (FOMC), while too steep a drop in US economic activity could lead to a widespread flight to safe havens like the US dollar. On the other hand, a resurgence in US economic activity would also dampen investor sentiment, as rate cut hopes depend on a slow march towards a soft-landing recession within the US domestic economy. USA

Dow Jones News

The Dow Jones is being dragged lower by the decline of key stocks on Tuesday. The DJIA is broadly in the red for the day, with only a third of the index’s stocks in the green, but the steep losses are concentrated in key stocks. Home Depot Inc. (HD) fell about 4% to $337.70 per share, followed by Walmart Inc. (WMT) which lost 2.78% and fell below $67.00 per share. Boeing Co. (BA) and Nike Inc. (NKE) were close, declining about 2.33% each to $53.35 and $95.11 per share, respectively.

Tuesday’s winners remain notably thin, with Amazon.com Inc. (AMZN) and Apple Inc. (AAPL) rising just over 1% each. Amazon gained ground to $187.64 per share, while Apple surpassed $210.00 per share after Monday’s drop below $208.00.

Dow Jones Technical Outlook

The Dow Jones is on track to close firmly lower on Tuesday with the index’s worst daily performance since late May as the index falls three-quarters of a percent on the day. An intraday rally is having limited effect, but is dragging down Tuesday’s bids from the day’s low at 38,982.37.

The daily candlesticks continue to chart just north of the 50-day EMA at 38,864.49, with long-term technical support from the 200-day EMA at 37,455.71. Despite remaining in bullish territory, the Dow Jones has struggled to make firm gains following a -5.15% pullback from all-time highs above 40,000.00 reached in mid-May.

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