NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Move Higher As Traders Prepare For Non Farm Payrolls Data

SP500

SP500 gains ground as traders react to economic reports. ADP Employment Change report indicated that private businesses added 54,000 jobs in August, compared to analyst forecast of 65,000. The previous report was revised from 104,000 to 106,000. Initial Jobless Claims report showed that 237,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 230,000. Both reports missed analyst estimates, and traders bet that Fed will cut rates due to weakness of the job market. Today, traders also focused on the ISM Services PMI report. The report showed that ISM Services PMI increased from 50.1 in July to 52.0 in August, exceeding the analyst forecast of 51. Numbers above 50 show expansion. Most market sectors gained ground in today’s trading session. Utilities stocks were among the losers as demand for safe-haven assets declined.

Currently, SP500 is trying to settle above the resistance at 6480 – 6490. In case this attempt is successful, SP500 will head towards historic highs near the 6510 level.

NASDAQ

NASDAQ is moving higher as traders bet on dovish Fed. Amazon, which is up by 4.1%, is the biggest gainer in the NASDAQ index today.

In case NASDAQ stays above the 23,500 level, it will head towards the resistance at 23,700 – 23,750. RSI is in the moderate territory, and there is plenty of room to gain additional upside momentum in case the right catalysts emerge.

Dow Jones

Dow Jones is moving higher, supported by strong demand for industrials and financial stocks.

From the technical point of view, Dow Jones is heading towards the resistance, which is located in the 45,700 – 45,800 range. If Dow Jones climbs above 45,800, it will head towards the 46,000 level. On the support side, a move below the 50 MA at 45,405 will push Dow Jones towards the support level at 45,000 – 45,100.

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