NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Pulls Back As Cisco Dives 12%

Key Insights

• SP500 is trying to settle below the 4500 level as traders continue to take profits after the recent rally. 
• NASDAQ declined below the 15,800 level. 
• Dow Jones is losing ground due to the strong sell-offs in Cisco and Walmart shares. 

SP500

SP500 is losing some ground as traders react to the economic reports. Initial Jobless Claims report showed that 231,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 220,000. Industrial Production declined by 0.6% month-over-month in October, while Manufacturing Production fell by 0.7%. NAHB Housing Market Index decreased from 40 in October to 34 in November as high mortgage rates put pressure on builder confidence. Treasury yields were moving lower as bond traders remained focused on the recent changes in Fed policy outlook. Energy stocks were among the biggest losers in SP500 today as traders reacted to the strong sell-off in the oil markets, which was driven by demand concerns.

From the technical point of view, SP500 remains stuck near the 4500 level. The nearest support level is located in the 4460 – 4475 range, but it remains to be seen whether it will be tested as general market sentiment remains bullish.

NASDAQ

NASDAQ pulled back as traders continued to take profits after the strong rally. However, this pullback was not strong as demand for tech stocks was healthy. Cisco, which is down by 12% after cutting outlook, was the worst performer in the NASDAQ index today.

If NASDAQ settles below the 15,800 level, it will move towards the 50 MA at 15,475. To gain sustainable upside momentum, NASDAQ needs to climb above the 15,900 level.

Dow Jones

Dow Jones is moving lower, driven by the sell-off in Cisco and Walmart stocks. Walmart beat analyst estimates but presented a cautious consumer spending outlook.

A move below the support at 34,650 – 34,800 will push Dow Jones towards the next support level at 34,000 – 34,150.

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