NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground As Traders Prepare For Big Tech Earnings And Fed Meeting

SP500

SP500 gains ground as traders react to economic reports and prepare for Fed decision, which will be released on Wednesday. Durable Goods Orders increased by +5.3% month-over-month in November, compared to analyst forecast of +3.7%. Durable Goods Orders Ex Transp grew by +0.5%, while analysts expected that they would increase by +0.3%. Today, traders also had a chance to take a look at the Dallas Fed Manufacturing Index report for January. The report indicated that Dallas Fed Manufacturing Index improved from -11.2 to -1.2, compared to analyst consensus of -6. Interestingly, worries about demand for U.S. assets amid geopolitical tensions, which have put material pressure on the U.S. dollar, did not hurt stocks. Basic materials stocks were among the gainers today as silver rallied above the $110 level while gold tested historic highs. Consumer and real estate stocks moved lower as demand for safe-haven assets declined.

SP500 climbed above the resistance at 6940 – 6950 and is trying to settle above the 6970 level. In case this attempt is successful, SP500 will head towards the next resistance, which is located in the 6990 – 7000 range.

NASDAQ

NASDAQ attempts to settle above the resistance at 25,800 – 25,850 amid rising demand for tech stocks. Apple, which is up by 3%, is among the biggest gainers in the NASDAQ index today.

If NASDAQ manages to settle above the 25,850 level, it will head towards the resistance at 26,250 – 26,300. RSI remains in the moderate territory, so there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

Dow Jones

Dow Jones gained ground as traders remained bullish ahead of the Fed meeting. The Fed is expected to keep rates unchanged, but traders focus on the strength of the U.S. economy.

From the technical point of view, Dow Jones needs to climb above the 49,600 level to gain additional momentum in the near term.

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