Dow Jones Futures Give up 100 Points Ahead of NFP Data
Dow Jones futures are 0.40% lower as of writing in more cautious tone after the four-day rally that hit fresh record highs. Robust economic data from the USA lifted investors sentiment despite the coronavirus outbreak. The ADP payroll figure showed that the US added 291k jobs in January, beating forecasts as it was the biggest rise since May 2015. Today traders await the NFP data that will drive markets. Analysts expect that the U.S. economy added between 158k – 161k new jobs in the first of the year while the unemployment rate expected at 3.5%.
Now the confirmed cases in China have crossed 30000 while the death toll is at 637, while 1542 patients have treated successfully. S&P cut its expectations for China’s 2020 growth to 5% from 5.7%. S&P also sees a quick rebound with 2021 growth at 6.4%. China accounts for almost one-third of global growth, so a slowdown in China will have a negative impact around the globe.
The Nasdaq futures are 0.31% lower at 9425 while the S&P 500 futures are 0.30% lower at 3335. Tesla yesterday added 1.94% at $748.96. Today in pre-market trading Tesla (TSLA) is 0.53% lower at $745.01.
Dow Jones futures point to a weak opening today after the index hit fresh all-time highs. Dow Jones had a four-day winning streak and bulls are in control of the index.
On the In case of correction first resistance for the Dow Jones stands at 29246 the low from yesterday’s trading session. If the index breaks below, then the next support zone will be met at 28525 the 50-day moving average. The ascending trendline that started in the beginning of 2019 will offer further support at 28126.
On the flip side, first resistance for the Dow Jones index will be met at 29,408.1 the high from yesterday’s trading session which also the all-time highs. Next resistance will be met at 29600 psychological mark .