- The Dow jolted on Tuesday and continued to struggle against the 45,000 barrier.
- ADP’s jobs report shows fresh job openings increased less than expected.
- Despite robust gains in key stocks and sectors, the Dow Jones Index was looking down.
The Dow Jones Industrial Average (DJIA) traded in a narrow range on Tuesday as investors grappled with mixed data and an overall unfavorable trend in non-tech stocks. ADP employment data points to a weaker-than-expected employment phase in November, although by a diminutive margin.
Federal Reserve (Fed) Chairman Jerome Powell appeared on Tuesday, but the Fed chairman stuck to familiar talking points. Markets observed a short-term augment in volatility, but the lack of essential announcements regarding the chances of an interest rate cut in December resulted in a decline in investor interest.
Data on employment change in the US according to ADP were slightly below expectations for November and amounted to 146,000. compared to the median market forecast of PLN 150,000. This figure has regressed further from the October release of 233,000, which has been significantly reduced to 184,000. As “preliminary” non-farm payrolls (NFP) data shows potential labor market slack, investors are becoming less confident about what Friday’s NFP print might look like.
The U.S. ISM Purchasing Managers’ Index (PMI) for November also fell to a three-month low, falling to 52.1 m/m compared with a forecast decline to 55.5 from October’s 56.0. While the ISM Services PMI component remains above a contracting level of 50.0, the number continues to depreciate and compares poorly with the Manufacturing PMI component released earlier this week, which showed aggregate business views predict slowing business conditions in the coming months.
Dow Jones News
Despite continuing to trend higher throughout the day, the Dow struggled on Wednesday, with about half of the board in the red. Salesforce ( CRM ) rose a staggering 9% to above $362 per share, climbing to all-time highs on continued promises to integrate artificial intelligence into the company’s data management operations, despite missing an earnings per share call in its latest results.
Dow Jones Price Forecast
The bullish momentum in the Dow Jones may have faded in recent days, but bidders aren’t leaving sellers much room to move. The main stock index is trading near record highs set north of the 45,000 level. While buyers have yet to set a fresh record high this week, rates are favoring the higher side as short-term momentum remains more of a bear trap than an opportunity.
Traders interested in a run-out play should expect a potential drop to the 50-day exponential moving average (EMA), which is currently rising to 43,000. However, due to the long-term pattern of bouncing off this key moving average, traders are advised to avoid attempting timing their exits and instead following the crowd as the market enters a fresh bullish phase.
