Dow Jones
Dow Jones futures are wavering today as investors wait for more progress on stimulus talks in congress. The futures are down by 100 points while the S&P 500 and Nasdaq 100 are down by 0.35% and 0.18%, respectively.
Investors have been focusing on talks between the White House and congress on the next phase of stimulus. Still, differences between the Democrats and Republicans are escalating. In a statement, yesterday, the White House threatened to act on its own to provide the stimulus. According to Mark Meadows, the chief of staff, Trump is prepared to act on his own to extend the extra jobless benefits.
The negotiations are happening at a time when data is showing that the US economy is in a difficult situation. Numbers from ADP released yesterday showed that the economy added just 167k jobs in July. Another data released by Challenger showed that job cuts in July rose by 576% to 262.6K. Meanwhile, another data by the Bureau of Labour Statistics showed that more than 1.18 million Americans filed for jobless claims in the previous week. That was the lowest number since March.
Among the notable companies moving the Dow Jones and other indices are Bristol-Myers-Squibb, T-Mobile, Illumina, and Restaurant Brands.
The Dow Jones is trading at $27,086, which is slightly below the June high of $27,635. The daily chart shows that the index has been in an upward trend as evidenced by the blue trend line. The price is also above the 50-day and 100-day exponential moving averages. It is also struggling to move above the 78.6% Fibonacci retracement level. Further, the smart money index has continued to rise. Therefore, this means that the price is likely to continue rising as bulls target the next resistance at $28,000.
On the other hand, a move below $26,00 will invalidate this trend. This price is both an important psychological level and also along the ascending trendline and the 50-day and 100-day EMAs.