- The Dow Jones index is stuck below 44,750 on Friday.
- Retail sales did not comply with forecasts, which caused caution among investors.
- The Dow is still ready to finish the week in green, but the winds against are increasing.
The Dow Jones industrial average (DJIA) cooled on Friday, losing around 100 points and staggering in the 44,600 region after US retail sales did not reach expectations in January. The US data in general were below the previous figures, except the export price index, which accelerated at its fastest rate in almost three years.
The US retail sales were well below expectations in January, contracted 0.9% against the forecast of -0.1%. The figure of the previous month was checked to 0.7%, but the strong fall hit investors’ confidence at the beginning of the US market session. Basic retail sales served better, but they still fell to -0.4% compared to the 0.3% forecast and 0.7% of the last post -reference.
The January export price index rose to a maximum of 32 months of 1.3%, well above the 0.3%forecast and the last 0.5%. Industrial production exceeded the forecasts, stating at 0.5% compared to 0.3% expected, but the figure was still below the last revision of 1.0%.
The markets will have an extended weekend, with the president’s day holiday scheduled for Monday. The key figures of next week will be the last minutes of the Federal Reserve Meeting (FED), which will be published on Wednesday, with the results of the Survey of the Purchasing Management Index (PMI) scheduled for next Friday.
Dow Jones News
Approximately two thirds of the Dow Jones shares are inclined to the bearish side on Friday after retail sales were much lower than expected. The key energy and bank giants are underpinning the upward side of the actions index, but the losses concentrated in the lower end are dragging the downward Dow Jones. Chevron (CVX) and Goldman Sachs (GS) rose around 1.6%, reaching $ 660 and $ 156 per share, respectively. Procter & Gamble (PG) fell 3.4% to $ 165 per share after the conglomerate indicated that “recent volatility” is affecting its food sales growth expectations for next year.
Dow Jones price forecast
The Dow Jones is moving towards a consolidation pattern between 45,000 and 44,000. The main actions index has been oscillating between the two price levels since it rose to the region in mid -January, and the price action is being limited by a technical roof in historical maximums about 45,070, a level that the Dow does not He has been able to recover since last November.
The bearish impulse is still limited, and a 50 -day exponential (EMA) mobile media will present a tempting point for bulls seeking to recharge long positions.
Dow Jones daily graphics
Dow Jones Faqs
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.
