- The Dow Jones falls 0.25% at the beginning of the day.
- The Nasdaq 100 marginally loses 0.05% on the day.
- The S&P 500 falls 0.12% daily.
The Dow Jones is trading lower in Tuesday’s session, in line with the main stock indices.
The Dow Jones Industrial Average began trading at 44,217, while the Nasdaq 100 technology index began trading at 21,079. On the other hand, the S&P 500 opened the day on Tuesday at 5,994, amid expectations for the United States inflation data, to be published tomorrow.
The Dow Jones is trading in negative territory weighed down by 3M and UnitedHealth
The Dow Jones Industrial Average loses 0.25% on the day, trading at 44.174 at the time of writing, prior to the release of US inflation.
3M Company (MMM) and Boeing (BA) lead the losses in the industrial index. MMM shares fall 1.89% trading above $130.46, reaching lows not seen since November 6.
In the same vein, BA resumes the recent bearish trend and falls 1.56% daily, currently trading at $146.68, reaching the lows of November 6.
AstraZeneca shares drag Nasdaq 100 into negative zone
The Nasdaq 100 technology index showed a marginal loss of 0.05% at the start of Tuesday’s session, dragged down by AstraZeneca (AZN) shares after releasing its earnings report.
AZN presents a daily drop of 1.13% after reporting revenues of $13.57 billion compared to the $13.06 billion projected by analysts, as well as earnings per share of $2.08, above the $1.02 expected by the consensus. However, these figures have not convinced investors, dragging down their values ​​to lows not seen since February 15.
Mosaic Company leads S&P 500 losses
The S&P 500 stock index falls 0.12% early in the session, dragged down by a dismal quarterly report from Mosaic Company (MOS).
MOS published its earnings report today, obtaining revenues of 2.81 billion dollars, falling below the 3.2 billion dollars expected by the market. Likewise, it presented an earnings per share of $0.34 compared to the $0.52 expected by analysts. These results have taken the share price to a low not seen since October 24 at $26.50, falling 5.53% today.
Investors will be attentive tomorrow to the publication of the United States Consumer Price Index (CPI), which is expected to register an increase to 2.6% in October from 2.4% reached in September.
Technical analysis of the Nasdaq 100
The Nasdaq 100 technology index established short-term support at 19,882 in confluence with the 50% Fibonacci retracement. We see the next important support zone at 18,394, given by the minimum of September 6.
On the upside, the closest resistance is at 21,229, the all-time high reached on November 11. The Relative Strength Index is at 66.89, favoring buyers in the short term.
Nasdaq 100 daily 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.
