Dow Jones Taps New Highs as Market Shrugs Off Trump Impeachment; Nike Reports Strong Earnings

The Dow Jones rallied to new record-highs yesterday as market participants seemed to shrug off US President Donald Trump’s impeachment. The US’ blue-chip stock index closed 137.7 points or 0.49% higher to 28.277.0.

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Gains were led by Cisco with a 2.66% profit. The stock surged when Barclays analyst Tim Long upgraded his target price on the share despite the company forecasting a 3%-5% decline in revenue for the fourth quarter. In second was 3M with a 1.85% gain, followed by Johnson & Johnson with a 1.51% uptick. Intel and Home Depot round up the top 5 performers at 1.38% and 1.02%, respectively.

On the other hand, the losers were: Caterpillar (-1.43%), Exxon Mobil (-0.69%), JPMorgan Chase (-0.50%), Chevron (-0.35%), Goldman Sachs (-0.22%), Versizon (-0.10%), and Disney (-0.08%).

Dow Jones to Rally on Nike’s Earnings Report?

A couple of stocks tracked by the Dow Jones also made headlines:

Yesterday, Nike released its earnings report after the market close. The shoe and apparel company posted its second consecutive quarter of rapid growth with sales growing by 10% to $10.326 billion. Meanwhile, its earnings per share grew by 35% to 70 cents per share.

Boeing Credit Rating Downgraded

On the other hand, Boeing saw a downgrade to its credit rating from A3 to A2. Moody’s cut the airline company’s debt score after the company announced that it will suspend its production of Boeing 737 MAX starting on January 2020.

Read our Best Trading Ideas for 2020.

Dow Jones Outlook

Remember the rising trend line I pointed out on the 4-hour chart of Dow Jones CFDs yesterday? Support held. It actually still looks valid in today’s trading. The stock index has some room to move lower to 28,310.7. This price coincides nicely with the trend line, its previous highs, and the 61.8% Fibonacci retracement level (when you draw from the low at 28,249.6 to yesterday’s high). If support at this price does not hold, it may mean that sellers could push prices down to yesterday’s lows at 28,234.3.

On the other hand, if buyers dominate today’s trading, we may not even see a pull back to the trend line. Reversal candles could suggest that the Dow Jones is on its way to tap new record highs beyond 28,407.5.

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