The Dow Jones futures pressured in pre-market as the coronavirus cases rise in the U.S. There are 31,000 new confirmed cases in the country Arizona, Texas and California have seen a dramatic increase the last days. On the trade front, the U.S. Trade Representative planning to impose tariffs on $3.1 billion of exports from France, Spain, Germany, and the U.K. The products are olives, beer, gin and trucks, and the tariff can be up to 100%. The Trump administration also wants to increase tariffs on imports such as aircraft, cheese and yoghurt from 15% to 25%.
On the data front earlier reported that the United States MBA Mortgage Applications dropped to -8.7% on June 19 from the previous 8%.
In corporate news, Dell is exploring options for its $50 billion stake in cloud computing company VMWare, either selling the stake or buying the portion of VMWare that it doesn’t own.
Ben & Jerry’s will boycott Facebook and Instagram ads, calling on Facebook to stop the spreading of racism and hate”. Amazon announced the creation of a Counterfeit Crimes Unit, targeting to bring to justice counterfeiters who violate the law.
Dow Jones futures are 0.89% lower at 25,787. The S&P 500 futures are 0.72% lower at 3,096, while Nasdaq futures are 0.27% lower at 10,170.
Dow Jones ended 0.50% higher at 26,156 but the index for one more day stalled at the 200-day moving average. The short term momentum is positive for the index, but bulls need a credible break above the 200-day moving average that might initiate a new leg higher.
On the upside, immediate resistance for the Dow Jones index stands at 26,315 the high from yesterday. A move above 26,315 might open the way for a test of 26,951 the low from June 10 which will also close the gap down. If the bulls continue then the next hurdle for the Dow Jones is at 27,368 the high from June 10.
On the other side, initial support for Dow Jones index is at 25,686 the low from June 22. Next support for the Dow Jones will be met at 24,885 the 100-day moving average. A break below 24,885 might open the way for a test of 24,825 the low from June 15.