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Dow Jones Hits New Historic Highs on Positive US Data

Dow Jones
Dow Jones

The Dow Jones traded to new record-highs on Friday. The US’ blue-chip stock index closed 78.1 points or 0.28% higher at 28,455.1. Meanwhile, the price of Dow Jones CFDs traded as high at 28,508.0 before the week’s trading finished.

Gainers and Losers

Gains were led by Verizon at 2.09%. In second was 3M with a 1.87% profit. Meanwhile, Merck and Caterpillar were in third and fourth at 1.77% and 1.76%, respectively. Intel rounded up the top five with a 1.71% gain.

On the other hand, there were eight stocks which scored losses. Boeing incurred the biggest loss of 1.65% following news that its spacecraft failed its mission. Boeing Co Starliner failed to reach the International Space Station after it successfully launched on Friday.

The other stocks that finished in the red were: Nike (-1.18%0 Cisco (-0.90%), UnitedHealth (-0.69%). Goldman Sachs (-0.44%), Apple (-0.21%), JPMorgan Chase (-0.08%), and Travelers Companies Inc (-0.03%).

US Data Meet Expectations

It would seem that the roster of economic data released from the US on Friday helped fuel the rally in US equities markets. The final GDP reading for the third quarter of 2019 came in as expected at 1.2%. Personal spending for the month also printed in line with forecasts at 0.4%. Meanwhile, the core PCE price index, which is said to be the Fed’s preferred measure of inflation, also posted met expectations at 0.1%.

Meanwhile, the total value of income received by consumers rose by 0.5% in November. This reading was higher than the 0.3% estimate by analysts.

Durable Goods Orders Could Dictate Dow Jones Today

Today, the Durable Goods Orders report is due at 1:30 pm GMT. It is expected that new purchase orders placed with manufacturers only grew by 0.2% in November from 0.5% in October. Meanwhile, the core reading which excludes transportation items, is anticipated to post a 1.5% uptick.

The new home sales report will also be released today. At 3:00 pm GMT, it is expected to print at 730,000.

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Dow Jones Outlook

The hourly chart of Dow Jones CFDs shows that the stock index is testing support at the rising trend line (from connecting the higher lows of December 19 and 20). Better-than-expected US data could help the Dow Jones find support at the trend line around 28,450.0. On the other hand, if the reports fail to impress market expectations, we could see the index slide below the trend line and to 28,312.1 where it previously made highs.