- The Dow regains losses while investors expect Microsoft, Apple, Meta and Amazon’s profit results.
- Uncertainty about tariffs weighs on feeling; The Dallas Fed index collapses to -35.8 in April.
- Gold rises almost 1% while the US dollar falls to a minimum of three days about 98.87.
The industrial average Dow Jones (DJIA) erased the above losses and rose, registering profits of more than 0.13%. Market participants were waiting for the profit reports of four of the seven Mega-CAP companies, which had reduced most US shares of shares, including the DJ. At the time of writing, the Djia remains above the 40,000 figure despite being down on the day.
The Djia rises 0.13% despite the cautious environment, concerns about tariffs and mega-capital technological actions under pressure
The feeling is still negative, as evidenced by trade on Wall Street with losses. Operators prepare for the publication of weekly profits from Microsoft, Apple, Meta and Amazon. Meanwhile, Amazon’s shares fall by 2%, Microsoft collapses more than 1%, and goal and Apple are the least affected, each lowering 0.5%and 0.4%, respectively.
The profits reports have been somewhat solid, but the expectations for the second quarter have been reduced in the midst of uncertainty about US commercial policies. What we sell them, and therefore, these 120% tariffs, 145% are unsustainable. “
In the data front, the Dallas Fed manufacturing index collapsed from -16.3 to -35.8 in April because the business executives became pessimistic and blamed the turbulence of the tariffs, according to the Dallas Fed report.
Apart from this, gold prices remained backed by a weak US dollar (USD), with yellow metal up almost 1% to $ 3,350. The US dollar index (DXY), which tracks the yield of a six -coins basket against the US dollar, lost 0.62% and is located at 98.87, the lowest level in the last three days.
Dow Jones price forecast
The Dow bias has not changed despite the fact that the index exceeded the key resistance of the simple mobile average (SMA) of 20 days and became support in 39,876. Buyers seem to gain some impulse as the relative force index (RSI) approaches their neutral line, but remains below level 50.
If the Djia exceeds 40,200, the next key resistance would be 40,500, followed by the 41,000 mark. The key resistance above is 41,565, where the 50 -day SMA is located, followed by the 200 -day SMA at 42,273.
On the other hand, if the Dow falls below 40,000, the road is cleared to test the minimum of April 23, 39,486, followed by the maximum of April 22, 39,271 to close the gap observed between April 22 and 23.
Dow Jones Faqs
The Dow Jones Industrial Avenge, one of the oldest stock market indexes in the world, consists of the 30 most negotiated values ​​in the United States. The index is weighted by the price instead of capitalization. It is calculated by adding the prices of the values ​​that compose 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 rates such as S&P 500.
There are many factors that promote the Dow Jones Industrial Average (DJIA) index. The main one is the added performance of the companies that compose it, revealed in the quarterly reports of business benefits. The American and world macroeconomic data also contribute, since they influence investor confidence. The level of interest rates, set by the Federal Reserve (FED), also influences the DJia, since it affects the cost of credit, on which many companies depend largely. Therefore, inflation can be a determining factor, as well as other parameters that influence the decisions of the Federal Reserve.
Dow’s theory is a method to identify the main trend of the stock market developed by Charles Dow. A key step is to compare the direction of the Dow Jones Industrial Avenge (DJIA) and the Dow Jones Transportation Average (DJTA) and just follow the trends in which both move in the same direction. The volume is a confirmation criterion. The theory uses elements of maximum and minimum analysis. Dow’s theory raises three phases of the trend: accumulation, when intelligent money begins to buy or sell; Public participation, when the general public joins the trend; and distribution, when intelligent money abandons the trend.
There are several ways to operate with the DJ. One of them is to use ETF that allow investors to negotiate the DJ as a single value, instead of having to buy shares of the 30 companies that compose it. An outstanding example is the SPDR Dow Jones Industrial Avenge ETF (day). Future contracts on the DJ allow the specular operators about the future value of the index and the options provide the right, but not the obligation, to buy or sell the index at a predetermined price in the future. Investment funds allow investors to buy a part of a diversified portfolio of DJ values, which provides exposure to 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.
