- The Dow Jones gains 0.17% at the start of the day.
- The Nasdaq 100 rises 0.83% daily.
- The S&P 500 rises 0.74% at the open.
The Dow Jones operates in positive territory at the beginning of Tuesday’s session, in line with the main stock indices.
The Dow Jones Industrial Average began trading at 41,860, while the Nasdaq 100 technology index began trading at 19,995. The S&P 500 opened the session at 5,719 with a volatile and uncertain outlook due to the close US presidential election.
The Dow Jones consolidates pending the US election results.
The Dow Jones Industrial Average gains 0.17% daily, currently trading above 41,869, remaining within a sideways range for the last four sessions.
American Express (AXP) and Intel (INTC) lead the gains in the index today. AXP rises 1.14% to trade at $273.23, reaching four-day highs, while INTC rises 1.80%, whose shares are trading at the time of writing at $22.89, reaching two-day highs.
Investors will be paying close attention to the results of the United States presidential elections today, with a close competition expected between Republican candidate and former President Donald Trump against Democratic candidate Kamala Harris.
GlobalFoundries leads gains on Nasdaq 100
The Nasdaq 100 technology index rises 0.83% on the day, in a day marked by political uncertainty. The polls do not show a clear advantage towards any candidate, so investors will focus on the official data at the end of the day.
GlobalFoundries (GFS) shares soared 9.37% today, trading above $39.44 after beating expectations in its earnings report, posting revenue of $1.74 billion versus the consensus of $1.73 billion. as well as an earnings per share of $0.41, above the $0.33 expected by analysts.
Palantir Technologies drives S&P 500 into positive territory
The S&P 500 stock index gains 0.74% early in the session, buoyed by an excellent quarterly report from Palantir Technologies (PLTR).
PLTR published its earnings report at the market close yesterday, achieving revenues of $725.5 billion, compared to the $703.36 billion estimated, and earnings per share of $0.10 versus the $0.09 projected by analysts. . PLTR shares have set a new all-time high today at $49.98, reflecting the confidence investors have had in the company.
Technical analysis of the Dow Jones
The Dow Jones Industrial Average finds short-term support at 41,641, the November 4 low. We observe the next support level at 41,447, the pivot point of September 18.
To the upside, the closest resistance is 42,489, the October 29 high in convergence with the 50% Fibonacci retracement. The next key resistance zone is at 43,036, the October 22 pivot point.
Dow Jones 3-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 both are 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.
