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Nasdaq Index, Dow Jones, S&P 500 News: Mixed Performance as Manufacturing Faces Downturn

By:
James Hyerczyk
Published: Dec 27, 2023, 15:53 GMT+00:00

Dow Jones and S&P 500 Index is displaying a mixed performance on Wednesday, recovering from early futures market losses.

Nasdaq Index, Dow Jones, S&P 500 News: Mixed Performance as Manufacturing Faces Downturn

Highlights

  • US stock indexes show mixed performance
  • Manufacturing sector reports slowdown
  • Legal action impacts tech sector

Mixed Trade on Light Volume

The major US stock indexes are putting in a mixed but mostly higher performance on Wednesday after recovering from early session losses in the futures market. Despite the early choppy trade, the indexes remain within striking distance of all-time higher.

Manufacturing Sector Shows Decline

In a contrasting development, the Fifth District’s manufacturing sector reported a slowdown, as indicated by the Richmond Federal Reserve. The survey showed a decrease in key manufacturing activities such as shipments and new orders, highlighting potential economic challenges.

Notable Stock Movements

In individual stock movements, Coherus BioSciences experienced a surge following FDA approval, while Netease faced a decline. These shifts reflect the dynamic nature of the stock market, with specific events significantly impacting individual stock performances.

In tech news, The New York Times has initiated legal action against Microsoft and OpenAI, marking a significant development with potential implications for the technology and AI sectors. This lawsuit could impact future operations and policies in tech companies.

Outlook and Forecasts

Despite the market’s current mixed performance and the manufacturing sector’s downturn, the general outlook remains cautiously optimistic. Investors are closely monitoring developments in monetary policy and legal matters, which are likely to influence future market trends.

Technical Analysis

Daily E-mini Dow Jones

The E-mini Dow Jones Industrial Average is currently showing a bullish sentiment in the market. Its current daily price of 37942 is significantly higher than both the 200-day and 50-day moving averages, which are 35020 and 35549, respectively. This positioning above the moving averages indicates a strong upward trend.

Additionally, the current price is well above the main support level of 35268 and has surpassed the minor support level of 36450, suggesting a lack of immediate downward pressure. The absence of specified minor and main resistance levels also indicates that there may be less obstruction to further upward movement.

Overall, the E-mini Dow Jones Industrial Average’s performance above key moving averages and support levels, combined with the lack of immediate resistance, points towards a bullish market outlook.

About the Author

James is a Florida-based technical analyst, market researcher, educator and trader with 35+ years of experience. He is an expert in the area of patterns, price and time analysis as it applies to futures, Forex, and stocks.

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