NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Gains Ground As Unitedhealth Soars 13%

SP500

SP500 is losing some ground as traders react to Retail Sales report. The report indicated that Retail Sales increased by +0.5% month-over-month in July, in line with analyst consensus. Retail Sales Ex Autos grew by +0.3% on a month-over-month basis. Today, traders also had a chance to take a look at Michigan Consumer Sentiment report for August. The report showed that Consumer Sentiment declined from 61.7 to 58.6, compared to analyst forecast of 62. Year-ahead inflation expectations increased from 4.5% in July to 4.9% in August. The stock market has mostly ignored rising inflation expectations, although Treasury yields moved higher. At this point, traders believe that Fed will cut rates despite inflation concerns. Industrial Production declined by -0.1% month-over-month in July, while analysts expected that it would remain unchanged. Healthcare stocks were among the biggest gainers in the SP500 index today, while tech stocks have found themselves under pressure.

The nearest support level for SP500 is located in the 6430 – 6440 range. A move below the 6430 level will push SP500 towards the 50 MA at 6403.

NASDAQ

NASDAQ is losing ground as traders take profits in tech stocks. Micron, which is down by 3.5%, is among the biggest losers in the NASDAQ index today.

Currently, NASDAQ is trying to settle below the support at 23,700 – 23,750. In case this attempt is successful, NASDAQ will head towards the 50 MA at 23,574.

Dow Jones

Dow Jones gained ground as Unitedhealth Group rallied by 13%. The stock soared as Berkshire Hathaway revealed a $1.6 billion stake in the company.

The technical picture remains unchanged as Dow Jones needs to settle above the resistance level at 45,000 – 45,100 to gain additional upside momentum in the near term. A move above the 45,100 level will open the way to the test of the 45,500 level.

For a look at all of today’s economic events, check out our economic calendar.