NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Pulls Back As Intel Falls 12%

Key Insights

• SP500 remained stuck below the key 4900 level as traders reacted to economic data. 
• NASDAQ moved lower as Intel’s weak guidance triggered a pullback in tech stocks. 
• Dow Jones settled above the 38,000 level, supported by the strong performance of American Express stock.

SP500

SP500 pulled back from session highs as traders took some profits off the table ahead of the weekend. Today, traders focused on PCE Price Index report, which showed that PCE Price Index increased by 0.2% month-over-month in December. Core PCE Price Index has also increased by 0.2%, in line with the analyst consensus. Personal Income grew by 0.3% in December, while Personal Spending increased by 0.7%. Pending Home Sales were up by 8.3% month-over-month in December, compared to analyst consensus of +1.5%. Overall, the reports showed that U.S. economy remained strong while inflation was under control. Not surprisingly, such reports have provided support to stocks, but it looks that traders decided to take some profits after the release of strong economic data.

SP500 did not manage to settle above the 4900 level and may move towards the nearest support at 4850 – 4865 if the pullback continues.

NASDAQ

NASDAQ is losing ground as Intel is down by 12% after the earnings report. the company beat earnings estimates but traders focused on the weak guidance. The strong sell-off in Intel stock triggered a wave of profit-taking in other tech stocks.

If NASDAQ stays below the support at 17,450 – 17,500, it will move towards the 50 MA at 17,228. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum.

Dow Jones

Dow Jones gained ground despite the sell-off in Intel stock as American Express rallied 6.5% after the strong earnings report.

From the technical view, Dow Jones needs to stay above the 38,000 level to gain additional upside momentum in the near term.

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