NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Dive As Traders Focus On NFP Revisions

SP500

SP500 is under strong pressure as traders react to the Non Farm Payrolls report. The report showed that U.S. economy added 73,000 jobs in July, compared to anlayst forecast of 110,000. Reports for previous two months were revised down by roughly 260,000. U.S. President Trump ordered to fire Erika McEntarfer from the Bureau of Labor Statistic, accusing her of manipulating the report for political purposes. The surprising weakness of the job market put significant pressure on stocks. Treasury yields tested multi-week lows as traders bet that Fed will be forced to cut rates at the next meeting. Today, traders also had a chance to take a look at ISM Manufacturing PMI report. The report indicated that ISM Manufacturing PMI decreased from 49.0 in June to 48.0 in July, compared to analyst consensus of 49.5. Numbers below 50 show contraction. Michigan Consumer Sentiment improved from 60.7 in June to 61.7 in July, missing the analyst forecast of 62. Not surprisingly, most market sectors moved lower in today’s trading session. However, consumer defensive and healthcare stocks managed to gain some ground amid rising demand for safe-haven assets.

The nearest support level for SP500 is located in the 6200 – 6210 range. A move below the 6200 level will push SP500 towards the next support at 6140 – 6150.

NASDAQ

NASDAQ suffered a strong sell-off as demand for tech stocks declined after the release of job market data.

In case NASDAQ settles below the 22,700 level, it will get to the test of the nearest support at 22,550 – 22,600. It should be noted that RSI is in the oversold territory, so the risks of a rebound are increasing.

Dow Jones

Dow Jones tested support at 43,300 – 43,400 amid broad sell-off in the equity markets.

A successful test of the support at 43,300 – 43,400 will open the way to the test of the next support level at 42,700 – 42,800.

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