- The Dow Jones rises 0.08% on Tuesday.
- The Nasdaq 100 falls 0.02% on the day.
- The S&P 500 loses 0.05% daily.
The Dow Jones presents a gain of 0.08%, trading at 44,422 at the time of writing, ending a streak of three consecutive downward sessions.
The Dow Jones Industrial Average opened at 44,412, while the Nasdaq 100 technology index began the day at 21,463. The S&P 500 began trading at 6,051, hitting one-week lows of 6,047.
Boeing and American Express lead Dow Jones gains
The Dow Jones Industrial Average is trading at 44.422 at the time of writing, gaining 0.08%, trading within the previous session’s range.
Boeing (BA) shares rose 4.77%, reaching more than three-month highs not seen since September 4 at $166.35, marking its second consecutive day with gains. The rally in its share price comes after the conclusion of a seven-week strike that froze the operations of more than 30,000 workers. In the same vein, American Express (AXP) values show a gain of 2.61%, currently trading at $304.57, erasing yesterday’s losses.
MongoDB and Super Micro Computer drag the Nasdaq 100 into negative territory
The Nasdaq 100 technology index fell 0.02% today, marking its second consecutive session lower to trade at the time of writing above 21,442.
MongoDB (MDB) shares fell 13.80% in trading on Tuesday, trading at $301.90 at the time of writing. The fall in MDB shares follows the publication of its quarterly report in which it obtained revenues of 529.4 billion dollars compared to 497.65 billion dollars. Likewise, it presented an earnings per share of $1.16, above the $0.67 expected by consensus. Although these figures are higher than market expectations, investors are not convinced of the company’s results and have dragged its share price to the lows of November 21 at 300.25. On the other hand, Super Micro Computer loses 9.51%, currently trading at $39.97, reaching the lows of December 4 at $39.78, signing its second consecutive downward session.
The S&P 500 trades with losses ahead of US inflation
The S&P 500 index fell 0.05% on Tuesday, reaching the lows of December 3 at 6,047, while investors remain attentive to the publication of the United States Consumer Price Index on Wednesday. Analysts’ projections place year-on-year inflation in November at 2.7%, marginally higher than the 2.6% recorded in October.
In the midst of this context, Oracle Corporation (ORCL) shares fell 7.98% after publishing its earnings report in which it achieved revenues of $14.1 billion compared to the $14.12 billion expected by analysts. Likewise, it obtained an earnings per share of $1.47 compared to the $1.48 projected by the consensus. These disappointing numbers are reflected in a drop to lows not seen since November 5 at $171.06.
Technical analysis of the Dow Jones
The Dow Jones reacted to short-term resistance given by the all-time high reached on December 5 at 45,058. The closest support is at 43.249, the November 21 low, converging with the 78.6% Fibonacci retracement. The next key support is at 42,850, the pivot point of November 19.
Dow Jones 3-hour chart
The 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 notable 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
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
