- Dow Jones retreats as UnitedStates production activity information beats expectations.
- Real Estate and Health sectors are leading losses, while Communication Services and Energy advance.
- DJIA remedies lower after rejection at the 40,000 mental level.
The Dow Jones Industrial Average (DJIA) is going through a substantial pullback on Monday. The favorable surprise in the US ISM Manufacturing PMI Index has put cold water on the US Federal Reserve’s (Fed) alleviating expectations which has activated a sharp rebound in US Treasury yields.
The UnitedStates production sector’s activity broadened onceagain after more than one year of contraction. The heading PMI increased to 50.3 from 47.8 in March, whipping expectations of a milder boost to 48.4. Beyond that, the Prices Paid sub-index rose to 55.8, its greatest reading consideringthat July 2022 and a favorable contribution to inflationary patterns.
These figures will mostlikely back Fed hawks’ view that there is no rush to start lowering loaning expenses. This week we have a string of Fed speakers and secret work figures to offer more ideas about the main bank’s strategies.
Dow Jones news
The Dow Jones Index loses 0.64%, to 39,545 throughout Monday’s afternoon trade, with most sectors in the red. The Real Estate and Health sectors are the greatest losers, dropping 1.46% and 1.06% respectively. On the favorable side, Communication Services advances 1.1%, followed by the Energy sector, 0.74% up.
Home Depot (HD) shares are leading the decrease with a 3.14% drop to $371.61, followed by Nike (NKE), down 1.93% to $92.17. Boeing (BA) continues bleeding with the business under a significant crisis that has led to the replacement of the board. The planemaker loses 1.48% to $190.16.
On the favorable side, 3M (MMM) outshined the rest of the business in the Index with a 4.55% dive to $92.72, followed by Chevron (CVX), up 0.9% to $159.17.
Dow Jones technical outlook
The Dow Jones Index is going through a considerable down correction on Monday, providing away half of the ground taken last week. The general pattern stays bullish, however the pullback from all-time highs provides bears hopes of screening assistance at the previous resistance level of 39,240.
DJIA stays bullish, standing conveniently above previous highs and the 4-hour 50 Simple Moving Average (SMA) at 39,250. Below here, the next drawback targets lie at the 39,000 level and the trendline assistance at 38,775.
Further down, the trendline resistance from late January lows at 38,850 would be next.
On the upside, the resistance location inbetween 39,850 and the 40,000 mental levels appears a difficult nut to fracture for bulls.
DJIA 4-Hour Chart
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