NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Move Lower As Traders Focus On Services Data

SP500

SP500 is losing ground as traders react to the weaker-than-expected ISM Services PMI report. The report showed that ISM Services PMI decreased from 50.8 in June to 50.1 in July, compared to analyst consensus of 51.5. Numbers above 50 show expansion. While the report showed that services sector continued to grow, traders worried about its slowdown. It should be noted that the market may have become more sensitive to disappointing economic reports after the release of the weak Non Farm Payrolls report. Most market sectors moved lower in today’s trading session. Utilities stocks were among the biggest losers as traders focused on rising Treasury yields. Meanwhile, basic materials stocks gained upside momentum as traders focused on rising gold and silver markets.

SP500 faced resistance at 6340 – 6350 and pulled back towards the 6300 level. The nearest significant support level for SP500 is located in the 6280 – 6290 range. A successful test of this level will open the way to the test of the next support at 6220 – 6230.

NASDAQ

NASDAQ retreats as traders focus on the potential slowdown in the services sector. Palantir, which was up by 6.8%, was among the biggest gainers in the NASDAQ index today. The stock rallied as traders reacted to the strong earnings report. Analysts rushed to upgrade Palantir, providing additional support to the stock.

In case NASDAQ manages to settle below the 23,000 level, it will head towards the nearest support at 22,850 – 22,900.

Dow Jones

Dow Jones is mostly flat as Unitedhealth Group is up by 3.9%. Boeing, which was up by 1.6%, was also among the biggest gainers in the Dow Jones index today.

If Dow Jones settles back above the recent highs near the 44,300 level, it will move towards the resistance, which is located in the 44,500 – 44,600 range.

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