- The DJIA rose 0.08% on Monday amidst the Chinese lockdown ease.
- Chevron Corp. was the biggest gainer, and Boeing lost more than any other.
- The US Retail Sales will provide a fresh impetus for the stocks.
The DJI started the week on a good note as the index increased by 0.08%. Stocks gained as China tried to reduce Covid-19 lockdowns that had threatened worldwide disruption, with a slew of US economic data and Federal Reserve speakers scheduled for the day ahead as investors focused on inflation and economic growth.
The general picture, though, remains volatile. Investors are assessing the dangers of a worse economic slowdown as the Federal Reserve attempts to cool inflation, nearing four-decade highs, geopolitical instability in Ukraine persists, and China deals with its greatest COVID outbreak since 2020.
The yield on the benchmark 10-year Treasury note rose on Tuesday as investors anticipated new economic data and sought signals about the direction of monetary policy.
The 10-year Treasury note rate recently traded up four basis points to 2.9240 percent, while the 30-year Treasury bond yield increased four basis points to 3.1317 percent.
Chevron Corp. CVX rose 3.06 percent to $173.01 after the Monday trading. Meanwhile, Merck & Co. (MRK) rose 2.11 percent or 1.91 points to close at 92.32, while Verizon Communications Inc. (VZ) rose 1.79 percent or 0.86 points to 49.04.
Boeing Co (BA) was the session’s worst performance, falling 2.48 percent or 3.15 points to trade at 124.05 at the close. The Walt Disney Company (DIS) was down 2.00 percent or 2.15 points to 105.18, while Salesforce.com Inc. (CRM) fell 1.67 percent or 2.79 points to 164.12.
DJIA key events
Tuesday will be a busy day on Wall Street, with a vital reading of April retail sales and results from bellwethers Home Depot (HD) and Walmart (WMT).
The April report will likely give the most vivid assessment of increasing inflation and record-high gas costs on the domestic consumer, with experts expecting a significant slowdown in core sales.
The durability of Home Depot in the face of a slowing housing market will be shown when the world’s largest home retailer releases its first-quarter report. At the same time, investors will most likely focus on growing prices and strong food sales in judging Walmart’s April quarter earnings.
Dow Jones Price Technical Analysis: A slight upside movement
The DJIA price forecast remains on the upside as it gained 0.08% on Monday. The daily chart shows a bullish momentum. However, the price is below the 20, 50, 100, and 200 SMAs.
DJIA is now hitting the 32223.43 level. A fall below 31928.18 will bring the index towards the 31862.79 support level. If the Dow dips below this level again, it will challenge the next support level at 31228.22.
On the upside, the index can go towards the next resistance level, around 32752.17. A break over 33055.84 will pave the door for a test of the following resistance level of 33341.58.
