- The Dow remains close to Monday’s opening bids, but the action is frail.
- Markets expect recovery from Friday’s NFP hangover.
- Wednesday brings an update on the US CPI, the Fed’s call and interest rate expectations.
The Dow Jones Industrial Average (DJIA) traded higher on Monday, hovering around 38,750.00 as investors looked for a reason to recover from last Friday’s defeat in the Nonfarm Payrolls (NFP) sector, which dashed broad market hopes for interest rate cuts .
Investors will be eagerly awaiting Wednesday’s report from the Federal Reserve (Fed). The Fed is widely expected to leave its interest rates unchanged this week, but markets will be scrambling to see updates to the Fed’s “scatter chart,” a summary of interest rate projections.
On Wednesday, data on inflation in the US will also be published – the Consumer Price Index (CPI). Investors hope that total CPI inflation will decline to 0.1% m/m from 0.3%, but core CPI is forecast to remain at 0.3% m/m.
Dow Jones News
The DJIA was mixed on Monday, with half of its stocks in the green and the other half down slightly. Walmart Inc. (WMT) climbs to the top of the pack, rising 1.73% to $67.02 a share on Monday as investors lean toward the retailer, confident that Walmart’s shift to online retailing and targeting to people with higher incomes will boost market share.
On the other hand, Apple Inc. stock. fell almost -2% to $192.92 per share after investors were unimpressed with the company’s latest technology offerings unveiled at the Worldwide Developers Conference. Apple’s latest technology solutions rely heavily on zeitgeist market darlings rather than original or intuitive solutions. Apple is pushing for deeper ChatGPT integration with its built-in Siri algorithm assistant, and the tech company soon also unveiled satellite communications for iOS devices.
Satellite messaging is widely known in technology circles due to its extremely power-intensive nature compared to established cell tower connections and extremely unstable connectivity during inclement weather.
Dow Jones Technical Outlook
The Dow Jones looks for support on Monday, staying above 38,700.00 despite the lack of upward momentum. The main index is still down from Friday’s highs near 39,100.00, and a short-term bullish rebound in June may be at risk.
The Dow Jones Index is still well off record highs above 40,000.00, but the demand zone below 38,000.00 is providing mighty long-term upside pressure, keeping the index well above the 200-day exponential moving average (EMA) of 37,318. 74.
