SP500 Gains Ground As Non Farm Payrolls Exceed Estimates
SP500 pulled back from session highs as traders took some profits off the table after the rebound and focused on economic reports.
Non Farm Payrolls report indicated that the economy added 165,000 jobs in October, compared to analyst forecast of +65,000. Unemployment Rate declined from 4.2% in September to 4.1% in October, while analysts expected that it would remain unchanged at 4.2%.
The reports showed that U.S. job market remained in decent shape. The strength of the job market provides Fed with an opportunity to focus on fighting inflation. The yield of 2-year Treasuries climbed towards the 4.51% level as bond traders bet on hawkish Fed.
Traders also had a chance to take a look at Michigan Consumer Sentiment report. The report showed that Michigan Consumer Sentiment increased from 48.0 in October to 51.0 in November, compared to analyst forecast of 48.
Current Economic Conditions improved from 46.7 in October to 51.0 in November, while Index of Consumer Expectations increased from 48.8 to 50.9.
Year-ahead inflation expectations decreased from 4.7% to 4.3%, while long-run inflation expectations pulled back from 3.5% to 3.4%. The pullback in inflation expectations is bullish for stocks.
Oil prices moved lower as traders focused on recent reports, which indicated that Iran was ready to discuss its nuclear program. The pullback was not strong as traders remained cautious ahead of the weekend.
Tech stocks were among the biggest gainers in the SP500 index today as traders rushed to buy the dip. Industrials and basic materials stocks have also managed to gain upside momentum. Consumer defensive stocks moved lower as demand for safe-haven assets declined.
SP500 continues its attempts to settle above the resistance level at 7390 – 7400. In case this attempt is successful, SP500 will move towards the next resistance, which is located in the 7470 – 7480 range. On the support side, a move below the 7370 level will push SP500 towards the support at 7310 – 7320.
NASDAQ Moves Higher As Traders Buy Tech Stocks After Sell-Off
NASDAQ gained ground as traders used yesterday’s sell-off as an opportunity to buy tech stocks. Advanced Micro Devices, which was up by +9%, was among the biggest gainers in the NASDAQ index today.
Currently, NASDAQ is trying to settle above the resistance level at 27,100 – 27,150. In case this attempt is successful, NASDAQ will head towards the next resistance, which is located in the 27,950 – 28,000 range. RSI has recently moved out of the oversold territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.
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See all Dow Jones forecastsDow Jones Tests Resistance At 51,400 – 51,500
Dow Jones moved away from recent lows as traders bought the dip. NVIDIA, which was up by +3%, was the biggest gainer in the Dow Jones index today. The stock moved higher after yesterday’s strong sell-off.
From the technical point of view, Dow Jones attempts to settle above the resistance at 51,400 – 51,500. In case Dow Jones manages to settle above the 51,500 level, it will head towards the 50 MA at 52,201. A move above the 50 MA will push Dow Jones towards the resistance at 52,300 – 52,400.
For a look at all of today’s economic events, check out our economic calendar.