- Dow Jones stabilizes after US PMI data
- Markets hungry for rate cuts hold out as US economic numbers continue to beat expectations.
- US PMIs rose in June as expectations for business activity turn optimistic.
He Dow Jones Industrial Average (DJIA) remains stubbornly flat on Friday, treading water after US equity markets were disappointed by a better-than-expected US Purchasing Managers’ Index (PMI) data. of June. Markets expecting a not-too-steep drop in US economic data to push the Federal Reserve (Fed) toward rate cuts were disappointed by the upbeat activity survey results, leaning toward the ” “bad news is good news” driving financial markets singularly focused on cheaper lending and financing rates from the Fed.
US PMIs handily beat Wall Street forecasts in June, with the S&P Global Manufacturing PMI rising to 51.7 from 51.3 the previous month, dismissing a forecast decline to 51.0. The services component also increased, rising to 55.1, its highest figure since May 2022. The previous month it had registered 54.8, and markets had expected a drop to 53.7.
On the negative side, US existing home sales fell back to 4.11 million monthly units in May, a -0.7% drop from the previous 4.14 million, but still a smaller decline than the expected 4.10 million. Despite Friday’s slightly higher PMI figure, markets continue to pin their hopes on a September rate cut by the Fed. According to CME’s FedWatch tool, rate traders are still pricing in around a 65% chance of at least a quarter-point cut in the Federal Open Market Committee (FOMC) rate decision on September 18.
Dow Jones News
On Friday, about two-thirds of the Dow’s constituent stocks were in the green, but gains remained tepid. McDonald’s Corp. (MCD) leads the gains, rising 2.4% to $260.00 per share as the fast-food chain taps into social consciousness around inflationary pressures with competitive pricing on strategic menu offerings. The food chain also announced it was abandoning AI integration after its custom “Automated Order Taker” proved woefully ill-equipped to handle large-scale real-world operations.
On the downside, the banking sector is faltering as interest rate hopes battle upbeat US data; JPMorgan Chase & Co. (JPM) fell 1.25% to $196.20 per share, while Goldman Sachs Group Inc. (GS) fell about the same to $452.50 per share.
Dow Jones Technical Outlook
The Dow Jones is flat on Friday, trading in a tight range in intraday action as the index struggles to find momentum to reclaim 39,200.00. The DJIA briefly established a new peak for the week near 39,260.00 before returning to the day’s opening range.
The daily candlesticks have jumped back above the 50-day EMA at 38,825.00, extending a recovery from a recent decline to the 38,000.00 region.
Dow Jones Five Minute Chart
Dow Jones Daily Chart
economic indicator
S&P Global Services PMI
The Services Purchasing Managers Index (PMI) published by Markit Economics captures business conditions in the service sector. The PMI is an important indicator of economic conditions in the United States. A reading above 50 points indicates expansion in economic activity, while a reading below 50 points implies a decrease in activity. A result higher than expected is bullish for the USD, while a result lower than the consensus is bearish.
Last post: Fri Jun 21, 2024 1:45 PM (Prel)
Frequency: Monthly
Current: 55.1
Dear: 53.7
Previous: 54.8
Fountain: S&P Global
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.
