- The Dow Jones fell 1.6% to 43,450.00 on Friday.
- The US PMIs were mixed, the feeling of the consumer fell, inflation expectations accelerated.
- It is reported that Unitedhealth is under investigation by the US Department of Justice.
The industrial average Dow Jones (DJIA) backed up more than 700 points on Friday, falling around a one and a half percent and touching the level of 43,500 for the first time in more than a month. The US economic data in general were mixed at bassists, but key losses are accumulating in single -target actions, significantly dragging Dow Jones down.
The fears of a possible recession are back on the table after an abrupt turn in the figures of the US Purchase Management Index (PMI). The component of the PMI of Services fell to 49.7, its lowest impression in exactly two years. With the PMI of Services falling below the 50.0 mark and returning to the contraction territory, the slow increase in the component of the manufacturing PMI helped maintain balanced things, but not for much. The manufacturing PMI rose to 51.6 from 51.2, reaching a maximum of seven months.
The consumer’s feeling index of the University of Michigan (UOM) also fell sharply in January, reaching a minimum of 15 months of 64.7, since inflation concerns weighed on the feeling of the consumer. The consumer inflation expectations 12 months of the UOM show that a sample of American consumers now expects inflation to be 4.3% during the next year, and the 5 -year perspective also accelerated to 3.5%. With the increasing consumer inflation expectations, it will be more difficult for the Federal Reserve (FED) to make feat cuts.
Dow Jones News
Approximately half of the Dow Jones shares table is green on Friday, but the strong falls in Unitedhealth (UNH) are hitting the main offers of the Dow. UnitedHealth is falling 9% in the day, going down to $ 458 per share after it was revealed that the health giant is about to be investigated by the US Department of Justice.
Dow Jones Price forecast
With a strong bearish thrust, Dow Jones is now operating in the dead zone between the exponential mobile socks (EMA) of 50 days and 200 days in 43,945 and 41,970, respectively. The price action has become sharply bassist, but there is still a lot of space for a strong setback to the high side.
A hard roof has been set near the area of ​​45,000, and it is likely that the bidders begin to accumulate again in the graph as prices continue to fall around 43,000.
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.
