The Dow Jones futures adds over 100 points in premarket as investors speculate on an agreement in new coronavirus relief package up to one trillion. Investors await the initial jobless claims with analysts expectations for a figure above one million for the 17th straight week.
In corporate front, Tesla reported yesterday after the closing bell, earnings of $2.18 per share for the 2Q, above the estimates of 0.03 cents per share. Revenue also beat the expectations, boosted by the sale of $428 million in emissions credits.
Twitter reported a loss earlier today and a 34% jump in daily active users compared to the previous year, bringing the total to 186 million. Revenue came below the forecasts.
Microsoft reported earnings of $1.46/share, beating the estimates by $0.12. Revenue also surpassed the expectations.
Investors seem to ignore the rising tensions between China and the USA after the US ordered the closure of the Chinese consulate in Houston, Texas, over spying allegations. China warned for retaliation with reports said that China would be closing the US consulate in Chengdu.
Dow Jones futures are 0.35% higher at 26,976. The S&P 500 futures are 0.30% higher at 3,275, while Nasdaq futures are 0.66% higher at 10,871.
Fear and Greed Index at 65
The fear and greed index jumped to 65 on optimism for a faster than expected economic recovery as Wall Street reaches four-month highs. Fear and Greed index was at 62 the previous week, while it was at 52 a month ago.
The put/call ratio in CBOE is at 0.46 for the second week, while the CBOE Volatility Index (VIX) or fear index continued the slide and ended yesterday 3.06% lower at 24.09.
Dow Jones Technical Analysis
Dow Jones ended 0.62% higher at 27,005 close to one-month highs and keeping the bullish momentum alive above the 200-day moving average. What can cancel the positive momentum is a return of the index below the 200-day moving average at 26,232.
On the upside, the first resistance for Dow Jones index stands at 27,035 the top from yesterday. A move above 27,035 would attract more bulls targeting 27,321 the high from June 10th. If the bulls continue then the next supply zone for the Dow Jones is at 27,598 the high from June 8th.
On the other hand, the initial support for Dow Jones is at 26,794 the low from yesterday’s trading session. Next support for Dow index will be met at 26,232 the critical 200-day moving average. A break below 26,232 might test 25,729 the 50-day moving average.
Dow Jones Daily Chart