- Summary:
- Dow Jones gives more than 65000 points on Wednesday on plunging industrial production and retail sales data. The U.S. Industrial Production came in at -5.4%
Dow Jones gives more than 65000 points on Wednesday on plunging industrial production and retail sales data. The U.S. Industrial Production came in at -5.4%, below analysts estimates of -4% in March, the U.S. factory output fell in March by the most since 1946. The Capacity Utilization registered in at 72.7% below the expectations of 73.8%. The Commerce Department’s report that retail sales in the U.S. were down a record 8.7% on March below the expectations of 8%.
Weak bank earnings don’t help either as fueled concerns over the coronavirus’ impact on the U.S. economy. Goldman Sachs reported that Q1 profit dropped 46%, the bank said it earned $1.21 billion or $3.11 a share, missing the $3.35 consensus estimate. Citigroup reported Q1 EPS of $1.05, above analysts estimate of $1.04. Revenue for the quarter came in at $20.7 billion also above forecasts of $19.01 billion.
Dow Jones dragged down by Exxon Mobil -6.76% at 39.56, JPMorgan Chase -5.19% at 90.55, Boeing -3.60% at 135 and Goldman Sachs -0.73% at 176.93.
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Dow Jones Levels to Watch
Dow Jones is 2.69% lower at 23,302 as the rebound from recent lows stalled at 24,000 mark yesterday. The technical outlook is still bearish despite the recent rebound as the index failed to break above the 50-day moving average.
The Dow Jones, initial support level, will be met at 23,233 the daily low. If the Dow index breaks below, the next support stands at 23,080 the low from April 10 trading session. More bids would emerge at 22,675 the low from April 8.
On the flipside, intraday resistance stands at 23,600 the daily high. If Dow Jones Index breaks above that level, the next level to watch is at 24,029 the yesterdays trading session high. In case of a move higher, the next hurdle stands at 24,761 the 50-day moving average.