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Dow Jones Set For Slightly Higher Open After Retail Sales Data

Dow Jones futures
Dow Jones

Dow Jones futures are modestly higher in pre-market after the correction from all-time highs. Dow Jones Industrial Average yesterday started the session lower after China reported 254 deaths and a rise in coronavirus confirmed cases of 15,152, after the province of Hubei applied a new classification system. Doubts raised among analysts as to whether China administration will be able to contain the spread of the virus in the very near future. The uncertainty pressured risky assets and stocks in Thursday’s early U.S. session. Additionally, Dow Jones dragged down by a worse-than-expected performance of Cisco Systems (CSCO), which reported weak quarterly results and guidance.

On the economic data front today, the retail sales climbed 0.3% in December in line with expectations, matching the previous month reading. Analysts expect robust consumer spending in 2020 helped by higher salaries and the low unemployment rate. The United States Import Price Index came in at 0.2%, topping the  expectations of -0.2% in January. The Export Price Index came in at -0.6% below market consensus of -0.1%.

Yesterday, the number of people applied for unemployment benefits in February rose slightly. Initial jobless claims increased by 2,000 to 205,000 in the week ended February 8. The previous reading was at 203,000, while the forecasts were at 210,000.

The CPI rose 0.1% in January on an adjusted basis, after rising 0.2% in December. In the last 12 months, the all items index increased 2.5% before seasonal adjustment. The CPI yearly reading came in at 2.3% (above the forecasts of 2.2%, the previous reading was at 2.3%.

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Dow Jones Technical Levels to Watch

Dow Jones pullback yesterday from all-time highs. Despite the pullback the outlook for Dow Jones remains bullish.  What might cancel the positive momentum is a move below the 50-day moving average at 28654.

On the upside, first resistance for the Dow Jones index will be met at 29,535 the high from yesterday’s trading session. The all-time highs at 29568.57 will provide the next strong supply zone. In case the index breaks higher the next resistance level stands at the 29.700 psychological mark.

On the flip side, immediate resistance for the Dow Jones index stands at 29345.9 the low from yesterday. In case of a further correction the next support will be met at 29201 the low from February 11th. Next support area for the Dow Jones index would be met at 28990 the low from February 10th.