SP500 Rebounds As JOLTs Job Openings Exceed Estimates
SP500 gains ground as traders focus on job market data and prepare for U.S. midterm elections.
JOLTs Job Openings increased from 7.19 million (revised from 7.079 million) in August to 7.523 million in September, compared to analyst consensus of 7.10 million. The report showed that the job market remained in decent shape.
Traders also focused on the Factory Orders report for September. The report indicated that Factory Orders increased by +1.8% month-over-month, compared to analyst forecast of +1.2%.
Oil prices moved lower as traders focused on diplomatic efforts in the Middle East. President Trump said that U.S. delivered limited strikes against Iranian targets overnight. The market does not believe that these strikes mark the beginning of a new war. Iranian reaction was muted. The country’s officials noted that Iran delivered a strong response without providing details.
Treasury yields gained ground ahead of midterm elections. The yield of 2-year Treasuries moved above the 4.61% level, while the yield of 10-year Treasuries climbed above 4.95%. Rising Treasury yields did not put pressure on stocks today.
Tech stocks were among the biggest gainers today as traders bought the dip. Industrials and communication services stocks have also gained upside momentum. Consumer defensive stocks found themselves under material pressure. Basic materials stocks also moved lower as traders focused on the pullback in precious metals markets.
In case SP500 climbs above the 7600 level, it will head towards the resistance at 7615 – 7625. A move above the 7625 level will push SP500 towards the 50 MA at 7661. If SP500 settles above the 50 MA, it will head towards the resistance level at 7690 – 7700.
NASDAQ Gains Ground On Dip-Buying
Traders also prepared for Advanced Micro Devices report, which will be released today after market close. The stock gained 5% ahead of the report.
Currently, NASDAQ is trying to settle above the resistance level at 28,250 – 28,300. In case this attempt is successful, NASDAQ will head towards the next resistance level, which is located in the 28,850 – 28,900 range. RSI is in the moderate territory, so there is plenty of room to gain momentum in the near term.
On the support side, a move below the 28,000 level will push NASDAQ towards the support at 27,800 – 27,850.
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See all Dow Jones forecastsDow Jones Retreats As Consumer Stocks Pulls Back
Dow Jones is losing ground amid falling demand for consumer cyclical and consumer defensive stocks. Home Depot, which was down by -2.7%, was among the biggest losers in the Dow Jones index today. The stock pulled back as traders took some profits off the table after the strong rally from October lows.
In case Dow Jones settles above the support at 51,700 – 51,800, it will head towards the resistance level, which is located in the 52,300 – 52,400 range.
On the support side, a successful test of the support at 51,700 – 51,800 will push Dow Jones towards the next support at 51,100 – 51,200.
For a look at all of today’s economic events, check out our economic calendar.