NASDAQ Index, SP500, Dow Jones Forecasts – Major Indices Ignore Producer Prices Data

SP500

SP500 is mostly flat despite the disappointing Producer Prices report. The report indicated that PPI increased by +0.9% month-over-month in July, compared to analyst forecast of +0.2%. Core PPI has also increased by +0.9%. The report showed that tariffs had an impact on Producer Prices. The key question is whether rising Producer Prices will lead to higher CPI numbers. Sometimes, producers are not able to pass higher prices to consumers. That said, Treasury yields moved higher, as bond traders reduced bets on dovish Fed. Meanwhile, stock traders have mostly ignored the report, which indicated that market sentiment remained extremely bullish. At this point, traders are worried that they would miss the rally and are not ready to sell stocks.

A move above the resistance level at 6475 – 6485 will show that SP500 is ready to gain additional upside momentum.

NASDAQ

NASDAQ was mostly flat in choppy trading. Traders continue to take profits near historic highs. Meanwhile, demand for tech stocks remains strong, which is bullish for NASDAQ index.

From the technical point of view, NASDAQ settled in a range between the support level at 23,700 – 23,750 and the resistance level at 23,900 – 23,950. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

Dow Jones

Dow Jones is losing some ground due to pullbacks in industrials and consumer defensive stocks. Home Depot, which is down by 1.8%, is the worst performer in the Dow Jones index today. The stock pulled back as traders took profits after the strong rally.

In case Dow Jones settles back above the 44,900 level, it will head towards the nearest resistance, which is located in the 45,000 – 45,100 range.

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