- Dow Jones sticks close to Monday’s opening bids in thin action.
- Markets looking for a recovery after NFP Friday hangover.
- Wednesday brings US CPI update, Fed rate call and interest rate expectations.
The Dow Jones Industrial Average (DJIA) churned chart paper on Monday, paddling around 38,750.00 as investors look for a reason to recover footing after last Friday’s Nonfarm Payrolls (NFP) rout that saw broad-market rate cut hopes wither on the vine.
Investors will be buckling down for the wait to Wednesday’s latest showing from the Federal Reserve (Fed). The Fed is broadly expected to stand pat on interest rates this week, but markets will be scrambling to see the updates to the Fed’s “dot plot”, or summary of interest rate projections.
US Consumer Price Index (CPI) inflation figures are also due on Wednesday. Investors are hoping that MoM headline CPI inflation will ease to 0.1% from 0.3%, but Core CPI is forecast to hold flat at 0.3% MoM.
Dow Jones news
The DJIA was mixed on Monday, with half of its securities in the green and the other half falling back slightly. Walmart Inc. (WMT) is rising to the top of the pile, climbing 1.73% on Monday to $67.02 per share as investors lean into the retailer, confident that Walmart’s pivot into online retail and targeting higher-income individuals will increase market share.
On the low side, Apple Inc. fell nearly -2%, declining to $192.92 per share after investors were broadly unimpressed with the company's latest tech offerings showcased at the Worldwide Developers Conference. Apple's latest tech solutions are broadly hinged on zeitgeist market darlings rather than original or intuitive solutions. Apple is championing a deeper integration between ChatGPT and its onboard algorithm assistant Siri, and the tech company also unveiled satellite messaging for iOS devices soon.
Satellite messaging is broadly famous within tech circles for being incredibly power-intensive compared to traditional cellular tower connections and having incredibly spotty connectivity during inclement weather.
Dow Jones technical outlook
The Dow Jones is looking for a foothold on Monday, holding above 38,700.00 despite a lack of upwards momentum. The major index is still down from Friday’s peaks near 39,100.00, and June’s near-term bullish rebound could be coming under threat.
The Dow Jones is still steeply off of record highs above 40,000.00, but a demand zone below 38,000.00 is providing firm long-term bullish pressure, keeping the index elevated well above the 200-day Exponential Moving Average (EMA) at 37,318.74.
