- Summary:
- The Dow Jones once again rallied to new highs as Boeing led gains in yesterday's trading. Not even negative US data weighed down the stock index.
The Dow Jones extended its gains in yesterday’s trading as the Santa Clause rally continued. The US’ blue-chip stock index closed 96.4 points or 0.34% higher at 28,551.5 despite negative data from the US.
Gainers and Losers
Boeing led gainers at 2.91% after the company announced that its CEO Dennis Muilenburg has been ousted. It was followed by 3M with a 1.77% uptick, then Apple in third with a 1.63% profit.
On the other hand, Disney lost the most with -1.05%. The second biggest loser was American Express which finished at -1.02%. Meanwhile, Verizon came in third at -1.05%.
Durable Goods and New Home Sales Miss Forecasts
Yesterday, the Census Bureau reported that new purchase orders placed with manufacturers declined by 2.0% in November. This figure missed the 0.2% uptick that market participants were looking for. Meanwhile, the core reading which excludes transportation orders, printed at 0.0%. This also fell short of the 1.5% forecast. Lastly, new home sales for November only rose by 719,000 from last year. It was anticipated that 730,000 new homes were sold compared to a year ago.
Richmond Manufacturing Index Due Today
Later today, the Richmond Manufacturing Index is due at 3:00 pm GMT. It is anticipated to show that executives in the area are slightly optimistic about business conditions with the forecast at 1.0. This is, however, considered as a third-tier report which means that the Dow Jones is more likely to take its cue from market sentiment.
Read our Best Trading Ideas for 2020.
Dow Jones Outlook
On the daily time frame, we can see that the CFD chart of the Dow Jones is trading sharply higher. If there are enough buyers in today’s trading, we could see the stock index trade to new historic highs above 28,579.5.
On the other hand, if sellers dominate today’s trading, we could see the Dow Jones trade lower to around the 28,000.00 psychological handle. The stock index previously found resistance at this level. At the same time, this price coincides nicely with the 38.2% Fib level when you draw from the low of December 3 to yesterday’s high. Lastly, the psychological handle also seems to align with the rising trend line from connecting the lows of October 3, October 10, and December 3.