The Dow Jones Industrial Average (DJIA) wobbled today in the futures market as the market reflected on the state of the economy. This is after the Labour Department released the worst economic data in recent history.
The data released today showed that the economy lost more than 701k jobs in March. This was worse than the 651k jobs that were lost at the peak of the last financial crisis. The unemployment rate, which was sitting comfortably at 3.5% shot back to 4.4%. According to Fed’s Lorretta Mester, the number could get worse. She expects the rate to drop to more than 11% if the situation remains as it is today.
Some of the biggest movers in the Dow are Disney, which is furloughing thousands of employees in the US. The stock is up by about 10 basis points in the premarket. 3M is another company that is making headlines after Trump criticized the company for its face mask production. Boeing stock too is rising, as the worst-performing Dow component too is furloughing employees. Energy companies like Exxon and Chevron too are rising in response to the higher oil prices today.
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Dow Jones Technical Analysis
The Dow Jones was barely moved in the CFDs market as the market reflected on the weak US economy. The index is trading at $21,250, which is slightly below this week’s high of $22,602. On the hourly chart, the price is slightly below the 23.6% Fibonacci Retracement level. The price is also consolidating along the 50-day, 100-day, and 200-day exponential moving averages.
At this point, the index will likely breakout in either direction. If it moves higher, the next resistance level to watch will be yesterday’s high of $22,602 and if it breaks lower, the level will be $20,602, which is an important support.
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