- The Dow Jones is struggling to stay green while concluding a week of unstable operations.
- The figures of the consumer’s feeling index of the University of Michigan (UOM) showed that American consumers are recovering from the April tariff inclination.
- The important disappointments in Friday’s profits are dragging the main stock market index by the day.
The industrial average Dow Jones (DJIA) oscillated on Friday, testing new weekly maximums in consumer feeling and inflation expectations. However, the Dow went back after the disappointments in the profits of raised key companies dragged the index down to close the week of operations.
The July consumer index of the University of Michigan (UOM) showed another recovery in the aggregate responses of the survey, with the index rising to 61.8 from 60.7. Consumer inflation expectations to 1 and 5 years were also softened on Friday, with the projection to a year falling to 4.4% from 5% and the 5 -year inflation perspective falling to 3.6% from 4%.
Key profits exceed expectations, but actions still fall
The Second Quarter Stall Week concluded on Friday, with the fall in large -weight key companies, dragging the downward Dow. Both 3m (mmm) and American Express (AXP) fell more than 3% after profits despite exceeding the main forecasts. 3M exceeded earnings and income expectations, but a quarterly spending of 2.2 billion in legal fees has generated concern among investors that more judicial costs could be on the horizon.
American Express also exceeded growth and profits expectations, but investors’ concerns are growing that the credit company will face winds against firm in the future. The volatility of the currency market and the exchange rates, the quickly evolving digital payment alternatives and the commercial frictions by tariffs threaten the American express fund line.
Dow Jones price forecast
The downward impulse on Friday has put Dow Jones within the touch range of opening offers of the operations week, with the main stock market index quoting within 0.1% of Monday’s initial prices. The Dow is fighting for maintaining a position in the region of 44,500, and The lack of a sustained bullish impulse could see DJia extend to the bearish side as the technical oscillators continue to retreat towards the average range.
Dow Jones daily graphics
Dow Jones – Frequently Questions
The Dow Jones Industrial Avenge, one of the oldest stock market indexes in the world, consists of the 30 most negotiated values in the United States. The index is weighted by the price instead of capitalization. It is calculated by adding the prices of the values that compose 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 rates such as S&P 500.
There are many factors that promote the Dow Jones Industrial Average (DJIA) index. The main one is the added performance of the companies that compose it, revealed in the quarterly reports of business benefits. The American and world macroeconomic data also contribute, since they influence investor confidence. The level of interest rates, set by the Federal Reserve (FED), also influences the DJia, since it affects the cost of credit, on which many companies depend largely. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
Dow’s theory is a method to identify the main trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Avenge (DJIA) and the Dow Jones Transportation Average (DJTA) and just follow the trends in which both move in the same direction. The volume is a confirmation criterion. The theory uses elements of maximum and minimum analysis. Dow’s theory raises three phases of the trend: accumulation, when intelligent money begins to buy or sell; Public participation, when the general public joins the trend; and distribution, when intelligent money abandons the trend.
There are several ways to operate with the DJ. One of them is to use ETF that allow investors to negotiate the DJ as a single value, instead of having to buy shares of the 30 companies that compose it. An outstanding example is the SPDR Dow Jones Industrial Avenge ETF (day). Future contracts on the DJ allow the specular operators about the future value of the index and the options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Investment funds allow investors to buy a part of a diversified portfolio of DJ values, which provides exposure to 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.
