NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Move Higher As Treasury Yields Fall

SP500

SP500 gains ground as traders focus on Trump’s decision to fire Fed’s Cook and react to economic reports. President Trump fired Cook following mortgage fraud allegations. He noted that he did not have confidence in her integrity. Cook said she would not resign. Treasury yields moved lower as traders bet on dovish Fed, which was bullish for stocks. Today, traders also focused on Durable Goods Orders report for July. The report indicated that Durable Goods Orders decreased by -2.8% month-over-month in July, compared to analyst forecast of -4%. CB Consumer Confidence declined from 98.7 in July to 97.4 in August, compared to analyst consensus of 96.2. Better-than-expected reports provided additional support to stocks. Industrials and healthcare stocks were among the biggest gainers in the SP500 index today. Energy stocks found themselves under pressure amid strong pullback in the oil markets.

SP500 settled above the support at 6430 – 6440 and is trying to settle above the 6450 level. In case this attempt is successful, SP500 will head towards the resistance at 6480 – 6490.

NASDAQ

NASDAQ continues its attempts to settle above the resistance at 23,450 – 23,500 as traders focus on falling Treasury yields. Advanced Micro Devices and NVIDIA are among the biggest gainers today as demand for chip stocks remains strong.

If NASDAQ manages to settle above the 23,500 level, it will head towards the next resistance, which is located near August highs at 23,900 – 23,950. 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 gained some ground in quiet trading. Boeing, which was up by 3.1%, was the biggest gainer in the Dow Jones index today.

A move above the 45,400 level will open the way to the test of the resistance level at 45,700 – 45,800.

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