- The Dow Jones rose more than one percent on Thursday.
- Investors have renewed vigor after a brief period of decline.
- Markets dismiss decline in manufacturing surveys, calls for softer earnings rise.
The Dow Jones Industrial Average (DJIA) soared on Thursday, rising more than 550 points as investors returned to their bidder shoes. US weekly jobless claims declined slightly on a weekly basis, as traders ruled out a contraction in the Philadelphia Fed’s manufacturing index. Markets also rose an increase in the variation of existing home sales. The industrial and financial sectors are the best performers of the day.
U.S. initial jobless claims were lower than expected on Thursday, showing 213,000 net new jobless claimants for the week ending Nov. 15, below the 220,000 expected and down from the Previous revised weekly figure of 219,000. The change in existing home sales also accelerated in October, rising to 3.4% after the revised -1.3% contraction in the previous month.
The Philadelphia Fed Manufacturing Survey for November raised another warning sign, retreating to -5.5 and falling sharply from the previous month’s 10.3 and beating the median forecast of 8.0. The falling figure in aggregate expectations did little to contain markets, which were determined to shake off short-term declines and return to record highs.
Dow Jones News
A broad rise in risk appetite across the sector on Thursday has propelled the Dow Jones back to the bullish extreme, with all but five of the stocks listed in the main index rising from the day’s opening bids. Salesforce (CRM) rose nearly 5%, topping $341 per share as analysts raise their price forecasts for CRM ahead of the digital database management company’s third-quarter earnings reports, due out later this year. the first week of December.
Dow Jones Price Forecast
The Dow Jones is back testing the main 44,000 level on Thursday, rising 600 points from the day’s lows near 43,200. After a brief pullback that saw the main equity index fall 3.7% from all-time highs near 44,485, bullish momentum has returned.
A consistent pattern of higher lows has kept the gas on in a one-sided bull run that began in November 2023. The price action has completely surpassed the 200-day exponential moving average (EMA) for 12 consecutive months, and time entries cutting is proving to be a dangerous task. Bidders still have to push prices above 44,400 before they can claim new all-time highs, and the 50-day EMA is holding a tight technical floor under intraday momentum from 42,600.
Dow Jones Daily Chart
The Dow Jones FAQs
The Dow Jones Industrial Average, one of the world’s oldest stock indices, is made up of the 30 most traded securities in the United States. The index is weighted by price rather than capitalization. It is calculated by adding the prices of the securities that comprise 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 indices such as the S& P 500.
There are many factors that drive the Dow Jones Industrial Average (DJIA). The main one is the aggregate performance of its component companies, revealed in quarterly corporate earnings reports. US and global macroeconomic data also contribute, influencing investor sentiment. The level of interest rates, set by the Federal Reserve (Fed), also influences the DJIA, as it affects the cost of credit, on which many companies largely depend. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
The Dow Theory is a method for identifying the main trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Average (DJIA) and the Dow Jones Transportation Average (DJTA) and only follow trends where they are both moving in the same direction. Volume is a confirmation criterion. The theory uses elements of maximum and minimum analysis. The Dow theory proposes three phases of the trend: accumulation, when the smart money begins to buy or sell; public participation, when the general public joins the trend; and distribution, when the smart money abandons the trend.
There are several ways to trade the DJIA. One of them is to use ETFs that allow investors to trade the DJIA as a single security, instead of having to buy shares of the 30 companies that comprise it. A prominent example is the SPDR Dow Jones Industrial Average ETF (DIA). Futures contracts on the DJIA allow traders to speculate on the future value of the index, and options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Mutual funds allow investors to purchase a portion of a diversified portfolio of DJIA securities, providing exposure to the 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.
