- The Dow Jones rose on Monday while the actions prove higher land.
- Operators continue to bet on a setback in tariffs.
- A thin economic calendar leaves commercial headlines as the dominant force.
The Dow Jones Industrial Average (DJIA) regained recent losses on Monday, winning just enough to maintain the important actions index within a short -term congestion. Technological actions lead the upward market, with gains reports greater than expectations so far helping to further reinforce the general feeling of the market.
Tariffs, profits and expectations too low
Trade and tariffs remain the issue of conversation in the commercial city. Key members of the Trump Administration have reiterated that August 1 is now the new “deadline” for commercial agreements before the reciprocal tariff package, in addition to a series of other new tariff threats in the last two weeks, enters into force. The “Liberation Day” tariffs, initially announced in April, were suspended by President Donald Trump until July 9, before being suspended again until the beginning of August. The markets have become accustomed to waiting for a change of the Trump administration in their own tariff threats at the last moment, and Trump’s attempts to increase the bet with two -digit tariff levels are having less and less effect on the markets.
The profit season has strengthened shares markets, with about 85% of the latest earnings calls exceeding the expectations of analysts so far. Some key technological labels, including Google’s parent company, Alphabet (Googl), and the Tesla headline generator (TSLA), will publish their latest profits this week. However, some have pointed out that analysts’ expectations may be manipulating the table. Sam Stovall, head of investments in CFRA Research, spoke with CNBC and pointed out:
“I rarely hurt yourself when you fall through a basement window. With so low expectations in profits, I think the final result will end up being better than anticipated.”
A quiet week in the calendar, but the headlines persist
Outside this week’s profit reports, little interest is on the economic data agenda. The latest figures on the purchasing managers index (PMI) are scheduled for Thursday, with the orders of latest late goods scheduled for Friday.
The ongoing campaign of the Trump administration to dismiss the president of the Federal Reserve (FED), Jerome Powell, continues this week. Trump’s allies in Congress have requested that the Fed Chief In front of criminal charges for perjury accusations related to the planned renewal of the central office of the Eccles of the Fed Building in Washington, DC.
Dow Jones price forecast
The last setback of the price of Dow Jones seems to have lost impulse as the bearish momentum struggles to find a point of support. The Dow is still struggling to find fresh ground above the main area of 45,000, but the price action is also reluctant to explore graphic territory below 44,000 at the moment. The immediate technical support is set in the 50 -day exponential mobile average (EMA) about 43,250, with the 200 -day EMA parked much below, just north of 42,000.
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.
