The Dow Jones futures slide today in premarket after yesterday managed to close to the highest level since June 10. Investors are watching the corporate earnings to assess the impact of the coronavirus lockdown to quarterly earnings.
Bank of America reported net income of $3.5 billion, or 0.37/share, down from $7.3 billion, or 0.74/share but beat the analyst’s estimates of 0.28/share. Loan provisions came up to $4 billion during the coronavirus pandemic. The quarterly revenue fell to $22.3 billion from $23.1 billion. Mixed economic data from China failed to impress investors. Chinese GDP grew by 3.2%, beating the forecasts of 2.5% showing signs of recovery after the coronavirus lockdown. The Industrial Production came in at 4.8%, beating the estimates of 4.7% in June. However, the retail sales in June fell 1.8% well below the expectations of +0.3%.
Yesterday, the U.S. consumer price index (CPI) rose 0.6% beating the expectations of a 0.5% increase. The yearly reading for CPI came in at 0.6% in line with the consensus forecasts. The Consumer Price Index excluding Food & Energy reported at 0.2% topping the estimates of 0.1%.
Boeing was 4.43% higher at 187.94; Apple was 0.69% higher at 390.90, JPMorgan was1.55% at 99.73 and Goldman Sachs ended 1.35% higher at 216.90.
Dow Jones Daily Analysis
Dow Jones ended 0.85% higher at 26,870 marking the highest close in a month and moved well above the 200-day moving average. Now the technical outlook is clearly bullish but needs a second settlement above the 26,224 level.
On the upside, initial resistance for the Dow Jones stands at 27,071 the high from yesterday. A move above 27,071 would attract more bulls targeting 27,321 the high from June 10. If the buyers continue then the next supply zone for the Dow Jones index is at 27,598 the high from June 8.
On the contrary, the immediate support for Dow Jones is at 26,692 the low from yesterday’s trading session. Next support for the Dow Jones will be met at 26,224 the 200-day moving average. A break below 26,224 might test 25,608 the low from July 10.