Dow Gains on Earnings Optimism and Shutdown Resolution Hopes.
Fundamental approach:
- The Dow Jones index advanced this week, supported by strong corporate earnings optimism and hopes for a government shutdown resolution.
- Major earnings reports from technology companies may lead the gains, with IBM scheduled to report Q3 earnings on Wed, 22 Oct, with expectations for AI-driven growth. Additionally, 3M (MMM) is scheduled to report Q3 earnings on Tue, 21 Oct, before market open.
- Fed Governor Christopher Waller provided a dovish signal, noting inflation was "not a barrier to rate cuts."
- This sentiment pushed US Treasury yields lower, with the 10-year note falling below 4.00%, offering support to equities amid the data uncertainty.
- Investors also focused on the potential end to the federal government shutdown, which has created data blackouts for key economic releases, with National Economic Council Director Kevin Hassett indicating the shutdown could end this week.
Technical approach:
- US30 is testing the previous all-time high at around 47000. The index is above both EMAs, indicating a strong bullish movement.
- If US30 breaches above 47000, the index may advance to test 127.20% Fibonacci Extension at 47590.
- On the contrary, staying below EMA21 may prompt US30 to retest the support at 45700.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
- The Dow Jones index advanced this week, supported by strong corporate earnings optimism and hopes for a government shutdown resolution.
- Major earnings reports from technology companies may lead the gains, with IBM scheduled to report Q3 earnings on Wed, 22 Oct, with expectations for AI-driven growth. Additionally, 3M (MMM) is scheduled to report Q3 earnings on Tue, 21 Oct, before market open.
- Fed Governor Christopher Waller provided a dovish signal, noting inflation was "not a barrier to rate cuts."
- This sentiment pushed US Treasury yields lower, with the 10-year note falling below 4.00%, offering support to equities amid the data uncertainty.
- Investors also focused on the potential end to the federal government shutdown, which has created data blackouts for key economic releases, with National Economic Council Director Kevin Hassett indicating the shutdown could end this week.
Technical approach:
- US30 is testing the previous all-time high at around 47000. The index is above both EMAs, indicating a strong bullish movement.
- If US30 breaches above 47000, the index may advance to test 127.20% Fibonacci Extension at 47590.
- On the contrary, staying below EMA21 may prompt US30 to retest the support at 45700.
Analysis by: Dat Tong, Senior Financial Markets Strategist at Exness
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Pernyataan Penyangkalan
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Pernyataan Penyangkalan
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.