- On Tuesday, the Dow was hovering near the 43,000 level.
- Stocks are struggling with rising yields.
- The lack of a confident tone from Fed officials has stocks hanging in overbought territory.
The Dow Jones Industrial Average (DJIA) struggled to get anywhere near the 43,000 level on Tuesday. The main index moved toward the middle as bulls struggled to respond to the short-term decline that started the trading week.
Earnings season is well underway, which is helping to boost investor confidence enough to keep losses within limits, even though stock prices are deep in overbought territory and most of the market’s preferred stocks are trading at eye-watering multiples. Stock giants Tesla (TSLA) and Coca-Cola (COKE) will report third-quarter earnings on Wednesday, and Honeywell (HON) on Thursday.
General Motors ( GM ) and Philip Morris ( PM ) easily beat Wall Street expectations on Tuesday, raising their full-year earnings forecasts. Meanwhile, Verizon (VZ) missed its latest earnings call, missing revenue expectations.
Dow Jones News
Despite a cautious start to the day, about two-thirds of the Dow Jones index is in the green zone on Tuesday. Microsoft (MSFT) rose 2.3% to $428.50 per share, followed by retail giant Walmart (WMT), which gained 1.5% to $82 per share. On the other hand, Verizon (VZ) lost 4.5%, falling below $42 per share after earnings expectations dropped.
Dow Jones Price Forecast
Despite the short-term weakness, the Dow Jones remains on a mighty upward trend, with the main stock index trading well above its 50-day and 200-day exponential moving averages (EMAs) of 41,788 and 39,453, respectively. DJIA prices have been rising sharply since August, when they hit a low level of 38,400, an augment of almost 13% from the bottom to the top.
The moving average divergence-divergence (MCAD) is breaking the needle trend into bullish territory, but the shrinking histogram points to a slowdown in the bullish momentum that has underpinned the Dow Jones Index for much of 2024. Despite deep overboughtness on the MACD, the potential for bearish price action remains constrained, and the Dow Jones remains positive for the sixth month in a row.
