NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Gains Ground Ahead Of Microsoft’s Report

Key Insights

• SP500 moved higher, supported by the better-than-expected PMI reports. 
• NASDAQ gained ground as traders prepared for the big tech reports. 
• Dow Jones moved towards 33,100 as traders focused on Verizon’s rally.

SP500

SP500 gains ground as traders react to the better-than-expected PMI reports. Manufacturing PMI improved from 49.8 in September to 50 in October, while Services PMI grew from 50.1 to 50.9. Both reports exceeded analyst expectations and indicated that U.S. economy remained in a decent shape despite rising interest rates. Bond markets were mostly calm today, which was also bullish for stocks.

From the technical point of view, SP500 is stuck between the support at 4215 and the resistance at 4260. In case SP500 manages to climb above the resistance in the 4260 – 4280 range, it will move towards the next resistance, which is located at 4335 – 4350.

NASDAQ

NASDAQ is moving higher as traders prepare for big tech earnings. Microsoft and Alphabet will present their quarterly results today, after market close. These reports will have a significant impact on NASDAQ dynamics, and traders should be prepared for fast moves in the post-market session.

Currently, NASDAQ is trying to settle above the 14,680 level. In case this attempt is successful, it will head towards the 50 MA at 14,915.

Dow Jones

Dow Jones moved away from recent lows as traders focused on the strong rally in Verizon shares. Verizon is up by more than 8% as traders react to the strong earnings report. The stock was trading near multi-year lows ahead of the report, so the market’s expectations were low.

Dow Jones needs to stay above the support at 33,000 – 33,100 level to have a chance to gain sustainable upside momentum. A move below the 33,000 will increase the risk of a sell-off.

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