- The Dow Jones remained stable on Tuesday after the technological rally was deflated, dragging the downward chips actions.
- Trump continues his campaign against the president of the Fed, Powell.
- Investors staggered their bullish position as the profit season presents some dark points.
The Dow Jones industrial average (DJIA) is still caught in a consolidation around the 44,400 region on Tuesday. The week of profits is in full swing, and some key disappointments on Tuesday made investors stop, twisting a turn in the technological rally and dragging the main blue chips down.
The president of the United States (USA), Donald Trump, still has a lot to say about the president of the Federal Reserve (Fed), Jerome Powell. The Trump administration is actively campaigning against the president of the Fed while Trump seeks a way to get rid of his own choice to direct the Fed earlier than expected. According to Donald Trump, interest rates in the US should be in or about 1%, depending on what calculation use Trump from one moment to another.
The profit season has been generally positive, with expectations of established analysts low enough so that more than 80% of the companies that report have exceeded expectations. However, the key disappointments on Tuesday affected the feeling of investors, with the defense manufacturer Lockheed Martin (LMT) falling to a minimum of 52 weeks after not fulfilling the expectations of income of the second quarter. The tobacco giant Phillip Morris (PM) He also fell short of earnings estimates, falling around 8% in the day at its lowest point.
AI, airplanes and tobacco
Technological actions suffered a blow on Tuesday as the incredibly overloaded sector began to show signs of greater tension. The dear of the ia rally NVIDIA (NVDA) He suffered a 2% drop after a report from the Wall Street Journal stressed that the Starlink megaproject of 500,000 million dollars, jointly financed by SoftBank and OpenAI, has found some early obstacles and must now reduce the expectations of what they can deliver in their original schedule. The semiconductors also suffered a blow on Tuesday, since the profits of computer hardware materials did not comply with the forecasts.
The owner of Google Alphabet (Googl) and Tesla (Tsla) They will begin to inform profits for the actions of ‘The Magnificent Seven’ of Great Capitalization on Wednesday. It is expected that a significant part of Wall Street’s profits expectations will be met by the two technological giants.
Dow Jones Price forecast
Mediocre performance has become the norm for Dow Jones. The price action is firmly anchored in a consolidation range between 44,800 and 44,000. The last bullish thrust of the Dow has left the higher shares index in anyone’s land without sufficient impulse to recover new historical maximums above 45,000. However, the downward technical levels are difficult to define with the Djia exceeding its own mobile means by a significant margin.
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.
