- The Dow Jones loses 0.01% today.
- The Nasdaq 100 falls 0.30% daily.
- The S&P 500 fell 0.20% in Thursday’s session.
The Dow Jones operates in negative territory after confirming that the Republican Party has achieved the majority in the House of Representatives. This result is added to the victory achieved in the Senate, materializing the Republican “red wave.”
The Dow Jones Industrial Average opened the session at 43,886, while the Nasdaq 100 technology index began trading at 21,007. The S&P 500 began trading at 5,978. The market will be attentive to the statements of Jerome Powell, president of the Federal Reserve, at the market close.
The Dow Jones operates in a negative zone dragged by Salesforce Inc and Amgen
The Dow Jones Industrial Average fell 0.01% on Thursday, trading at 43,963 at the time of writing, remaining within the operating range of Wednesday’s session.
Salesforce Inc (CRM) registers a drop of 2.44%, trading at $333.30, reaching the lows of November 11. In the same vein, Amgen (AMGN) loses 2.74% daily, trading at $292.83, signing its fourth consecutive session down, reaching lows not seen since May 2.
Super Micro Computer and Tesla push Nasdaq 100 to one-week lows
The Nasdaq 100 technology index loses 0.46% today, currently trading at 20,951 and reaching lows not seen since November 7 at 20,935.
Tesla (TSLA) fell 3.96% on the day, reaching November 8 lows of $316.28. Following the same trend, Super Micro Compute (SMCI) shares plummet 6.76% daily, visiting May 24 levels at $17.36
The S&P 500 is trading with losses after the Republican victory in the United States Congress
The S&P 500 stock index loses 0.15% in Thursday’s session, after confirming the Republican majority in both the Senate and recently in the House of Representatives. This scenario represents a smooth path for the economic and political agenda of President-elect Donald Trump.
On the other hand, weekly unemployment benefit requests stood at 217,000, improving the 223,000 estimated by the market. Likewise, production prices rose to 2.4% year-on-year in October, above the 2.3% projected by analysts.
Investors will focus their attention on the speech by Federal Reserve Chairman Jerome Powell at the close of the day.
Technical analysis of the S&P 500
The S&P 500 formed short-term resistance given by the all-time high recorded on November 11 at 6,017. To the south, the first support zone is at 5,694, the low of November 4. We see the next key support at 5,672, the pivot point of October 2. The Relative Strength Index is at 56.52, showing a slight bullish bias that keeps the index at levels close to its all-time high.
S&P 500 4-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 prominent 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.
