NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Retreats As IBM Dives 7.8%

SP500

SP500 gained ground as traders reacted to PMI reports. Manufacturing PMI decreased from 52 in June to 49.5 in July, compared to analyst forecast of 52.6. Services PMI improved from 52.9 to 55.2, compared to analyst consensus of 53.0. The reports showed that the services sector remained in great shape. Today, traders also had a chance to take a look at the Initial Jobless Claims report. The report indicated that 217,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 227,000. New Home Sales decreased by -0.6% month-over-month in June, while analysts expected that they would increase by +10%. From a big picture point of view, the reports showed that U.S. economy remained strong despite tariff uncertainty.

SP500 is trying to settle above the resistance level at 6390 – 6400. In case this attempt is successful, SP500 will head towards the 6450 level.

NASDAQ

NASDAQ gained some ground despite the sell-off in Tesla stock. Tesla is down by 8.2% as traders react to the company’s earnings report. Elon Musk warned that that next quarters could be “rough”.

If NASDAQ stays above the resistance at 23,150 – 23,200, it will head towards the 23,500 level. RSI remains in the moderate territory, and there is plenty of room to gain momentum in the near term.

Dow Jones

Dow Jones pulled back as IBM  declined by 7.8%. The stock suffered a sell-off despite the better-than-expected quarterly report. The company’s software revenue missed analyst estimates.

Dow Jones failed to settle above the resistance at 45,000 – 45,100 and pulled back towards the support level at 44,600 – 44,700. If Dow Jones declines below the 44,600 level, it will head towards the 50 MA at 44,441. A move below the 50 MA will push Dow Jones towards the next support at 43,900 – 44,000.

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