Dow Jones Retreat Despite Better Initial Jobless Claims

Dow Jones New York Stock Exchange
Dow Jones

Dow Jones futures trade lower today but off the daily lows despite the better than expected weekly unemployment data. Investors attention is on the negotiations of a new stimulus package that is needed in the U.S. coronavirus battered economy. Despite the recent better than expected U.S economic data, markets desire more stimulus as the recent rise in new infections might halt the economic recovery.

The United States Initial Jobless Claims reported at 963K, below the forecasts of 1120K on August 7; that was the first reading below one million since March 21. The Initial Jobless Claims 4-week average dropped to 1252.75K on August 7 from 1337.75K in the previous week. The Continuing Jobless Claims came in at 15.486M, also below the analyst’s estimates of 15.898M in the week of July 31.

The U.S. Export Price Index registered in at 0.8%, beating the expectations of 0.6% in July, while the Import Price Index came in at 0.7%, topping the forecasts of 0.4%.

Apple continues higher for one more day, adding 1.20% at 457.49. 3M trades 1.02% higher at 165.99 after the company reported improvement in sales the last month. On the other hand, Cisco is down 11% after it reported a drop in revenues and weak earnings guidance for the third quarter; it also announced that its CFO is stepping down.

Dow Jones Daily Analysis

Dow Jones gives up 0.10% at 27,944, as investors stand cautious after the recent rally and despite the clear bullish momentum. Dow Jones formed a gold crossing the previous week as the 50-day moving average crossed above the 200-day moving average enhancing the positive momentum. The pullbacks looking like a buying opportunity, but investors must be very careful as the index is approaching overbought levels.

Support for Dow Jones can be found at 27,853 today’s low. A close below might challenge 27,478 the low from August 10. More bids would emerge at 26,885 the low from August 5 trading session.

On the upside, Dow Jones would face the intraday resistance at 27,986 today’s high. The next hurdle would be met at 28,050 the top from yesterday’s trading session, while a break above might test the recent highs at 28,145.

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Dow Jones Daily Chart

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