- Dow Jones rallies as Nvidia slashes losses; twitter jumps as musk raises financing.
- Among Dow Jones stocks, Apple shares inched 0.1% higher on Thursday.
- After Thursday’s open, the Dow Jones Industrial Average moved up 1.1%.
The Dow Jones Industrial Average was up by 0.60% for the fourth straight intraday session, adding 191.66 points to its value. Following a previous increase of 1.98%, it settled at 32,120.29 at the end of trading.
The Dow Jones Industrial Average rose Thursday morning as Nvidia shares slashed their losses following disappointing sales outlooks for the current quarter. Following Elon Musk’s commitment to the Twitter deal, the Twitter stock jumped.
On Thursday morning, the Dow Jones Industrial Average and the S&P 500 gained 1.1% and 0.95, respectively. In morning trade, the tech-dominated Nasdaq composite increased 0.7%.
Invesco QQQ Trust (QQQ) tracked the Nasdaq 100 index and moved up 0.7%. Meanwhile, SPDR S&P 500 ETF (SPY) gained 1%.
As of Thursday morning, the 10-year Treasury yield was 2.75%, up from Wednesday’s close of 2.74%. The 10-year Treasury yield fell to its lowest level since mid-April on Tuesday. Oil prices in the U.S. rose more than 1%, with West Texas Intermediate trading just below $112 per barrel.
Following Wednesday’s 1.6% gain, IBD MarketSmith chart analysis found Chevron traded just above IBD MarketSmith’s 174.86 buy point. At 183.60, there is a 5% buying zone. CVX shares gained 0.4% on Thursday.
In its meeting minutes released in early May, the Federal Reserve advocated half-point moves by the Fed as it tries to reach “quick to neutral” on the sovereign interest rate over the next two meetings, with high inflation remaining the main focus. The central bank appears willing to rethink aggressive plans to raise interest rates to curtail inflation.
As the central bank looks to trim its balance sheet near $9 trillion, the minutes also addressed the possibility of direct mortgage securities sales to the bank. Another economic highlight was a smaller-than-expected increase in durable goods orders and another decline in mortgage applications. The durable goods orders rose 0.4%, and shipments increased 0.1% in April. Including transportation, new orders and shipments rose 0.3% and 0.2%, respectively. The Mortgage Bankers Association reported that mortgage applications declined 1.2% in the week ending May 20, following an 11% decline the previous week.
Dow Jones technical analysis:
The index’s stability above 32,000 is technically a positive sign, especially since the RSI indicators have shown continued positive activity. Although the index is still trading within a price channel range, the corrective bearish trend remains the dominant trend in the short term, as shown in the chart below. For some time (daily), it continues to trade below its simple moving average for the previous 50 days despite the negative pressure.
We, therefore, still expect that the index’s decline will resume during the upcoming trading session, especially if the index’s stability returns below 32,000, after which it will target the main support level of 31,000.
