NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As Apple Dives 5.5%

SP500 Retreats Amid Inflation Worries

SP500 is losing some ground as traders focus on economic reports. GDP Growth Rate was +2.1% in the first quarter, compared to analyst forecast of +1.6%. PCE Price Index increased from 3.8% in April to 4.1% in May, in line with analyst estimates. It should be noted that PCE Price Index is Fed’s favourite inflation gauge.

Durable Goods Orders declined by -4.5% month-over-month in May, meeting analyst expectations. Durable Goods Orders Ex Transp increased by +1.3%, compared to analyst forecast of +0.6%.

Today, traders also had a chance to take a look at the Personal Spending report. The report indicated that Personal Spending increased by +0.7%, while analysts expected that it would grow by +0.6%. Personal Income grew by +0.7%, exceeding the analyst estimate of +0.4%.

The Initial Jobless Claims report showed that 215,000 Americans filed for unemployment benefits in a week, compared to analyst forecast of 225,000.

Overall, the reports showed that U.S. economy remained in decent shape. Interestingly, Treasury yields moved lower despite the better-than-expected GDP Growth Rate report. However, falling Treasury yields did not provide support to stocks today.

Consumer cyclical and consumer defensive stocks were among the biggest losers in today’s trading session. Basic materials stocks gained ground as traders focused on the rebound in precious metals markets.

Currently, SP500 is trying to settle below the support at 7370 – 7380. In case this attempt is successful, SP500 will move towards the next support level, which is located in the 7290 – 7300 range.

NASDAQ Is Losing Ground As Apple Hikes Prices For Macs

NASDAQ pulled back despite the strong rally in Micron stock. Micron gained 14% as traders reacted to the strong earnings report. Analysts rushed to upgrade the stock, providing additional support to Micron shares.

Strategy, which was down by -8%, was the biggest loser in the NASDAQ index today. The stock suffered a sell-off as Bitcoin tested new lows.

Apple pulled back by -5.5% as the company raised prices for all Macs and iPads due to shortage of memory chips. iPhone and Apple Watch prices were not changed, bu the company indicated that it could adjust them in the future.

NASDAQ attempts to settle below the support level at 29,350 – 29,400. If NASDAQ manages to settle below the 29,350 level, it will head towards the next support, which is located in the 28,800 – 28,850 range.

On the upside, a move above the 29,600 level will push NASDAQ towards the resistance at 29,800 – 29,850. If NASDAQ climbs above the 29,850 level, it will head towards the 50 MA at 30,099.

Dow Jones Tested New Highs

Dow Jones tested historic highs but lost momentum and pulled back as traders rushed to take some profits off the table.

The nearest support level for Dow Jones is located in the 51,600 – 51,700 range. In case Dow Jones pulls back below the 51,600 level, it will head towards the support at 51,000 – 51,100.

On the upside, Dow Jones needs to settle above the key resistance level at 52,100 – 52,200 to gain additional upside momentum in the near term.

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