The Dow Jones index continued rallying today as investors remained optimistic about the state of the economy. The index has added more than 335 points to its yesterday’s gains of more than 500 points.
Boeing shares rise as it starts layoffs
Boeing was among the biggest movers in the Dow Jones after the company announced a new round of 2,500 voluntary retirements. This will be the first phase of layoffs as the company tries to shed about 10% of its total workforce. The firm has more than 160,000 employees, meaning that about 16,000 of them will be laid off.
Boeing has been in trouble since last year, when a 737 Max plane crashed in Ethiopia because of a problem with its MCAS system. This led to all airlines to ground the jet as the company tried to address the problem. As a result, federal investigators and congress started investigating the company.
The current coronavirus pandemic has made it difficult for Boeing to do business. It halted production at its several plants in the US. Also, the company has faced many order cancellations as many airlines struggle.
Boeing share price is at $149 in the premarket.
Disney shares rise as company seeks reopening
Disney has been hit by the coronavirus hard. The company was forced to shut its theme parks and park its cruise lines. With theatres closed, the firm’s movie business has been affected. Also, with most sports being stopped, most subscribers to its sporting platforms like ESPN cancelled their subscriptions. Now, the company is planning to open some of its parks. Today, it is submitting a plan to Orange County and the governor before it reopens.
Other top movers in the Dow Jones are Exxon and Chevron, which reacted to higher oil prices.
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Dow Jones technical outlook
The Dow Jones is trading at $25,416, which is the highest it has been since March 6. On the daily chart, this price passed the important 100-day EMA yesterday. It is also slightly below the 61.8% Fibonacci retracement level, where it will likely face some resistance. The momentum indicator remains at elevated level.
The upward trend will remain so long as the price remains above the 100-day EMA of $24915. A move below this level will send a signal that there are more sellers in the market who will be interested in pushing it lower.
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