Dow Jones Futures Point to Neutral Opening Despite Better GDP data
Wall Street futures contracts in premarket point for a neutral start in the cash market later today. The Dow Jones gives up 0.03% at 27,034. The Nasdaq futures currently trading 0.10% higher at 8,063, while the S&P 500 futures trading 0.02% higher at 3,036. Investors expect the Fed to cut interest rates for 3rd time in a row by 25 basis point even with Wall Street closet to record highs.
The United States Gross Domestic Product Price Index came in at 1.6%, below forecasts of 1.9% in 3Q, 2019. On a yearly basis, the GDP grew 1.9% topping the market expectations of 1.7%. The ADP Non-Farm Payrolls came in at 125,000 for private-sector hiring in October, beating expectations of 120,000.
Dow futures trade lower in the pre-market session ahead of Fed decision and the earnings release while keeping the bullish short term momentum. On the downside, Dow Jones futures first support stands at 27,008 today’s low and then at 26,642 the 100-day moving average, a break below might accelerate the move to the next support level at 26,187 and the 200-day moving average. On the upside the first resistance stands at 27,068 today’s high and then at 27,080 the high from October 17th. A break above that zone will open the way for a move up to all-time highs for the Dow futures at 27,399. The technical analysis outlook for Dow Jones is bullish and is safe for bulls as far as the index trades above 26,500.
European equity indices trading higher, the DAX 30 is 0.23 percent lower at 12,909 while CAC 40 in Paris trades 0.24 percent higher at 5,753. The FTSE 100 is 0.01 higher at 7,306.Download our latest quarterly market outlookfor our longer-term trade ideas.
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