S&P 500
Dow Jones futures are up by more than 50 points after falling by more than 173 points yesterday. The index is trading at $29,930, which is almost 1% below this week’s high of $30,210.
Today and tomorrow volume on the Dow Jones and other American indices will be significantly lower since the US will be observing the Thanksgiving holiday.
However, investors will be thinking about IBM and Walt Disney, two members of the index. In a report by Bloomberg, IBM, the giant technology company said that it is planning to cut as much as 10,000 jobs in Europe in its bid to cut costs. Most of the laid-off employees will be in the United Kingdom and Germany.
In another statement, Disney, which reported strong growth of its Disney+ platform said that it would slash 4,000 employees. The new announcement brings the total number of staff the company is laying-off to more than 32,000.
Salesforce is another Dow Jones company that investors are focusing on. According to the Wall Street Journal, the company has held talks to acquire Slack, the communication company. The transaction could be worth more than $20 billion.
On the four-hour chart, we see that the Dow Jones has moved slightly lower after it reached an all-time high of $30,210 this week. The price has also moved slightly lower than the 15-day and 25-day hull moving averages. It also seems to be forming a small bearish consolidation pattern that is shown in pink.
Therefore, in the near term, I suspect that the price will resume moving lower as investors eye the next support at $29,500. However, as I wrote two weeks ago, I predict that the price will continue rising and possibly rise to $30,750.
