NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Pull Back As Initial Jobless Claims Exceed Estimates

SP500

SP500 pulls back as traders react to the weaker-than-expected Initial Jobless Claims report. The report indicated that 226,000 Americans filed for unemployment benefits in a week, compared to analyst consensus of 221,000. Traders also focused on reports indicating that Fed Governor Christopher Waller would be Donald Trump’s candidate for Fed Chair post. Utilities and consumer defensive stocks were among the biggest gainers in the SP500 index today as demand for safe-haven assets increased. Healthcare and financial stocks found themselves under strong pressure.

SP500 declined below the previous support at 6340 – 6350 and is trying to settle below the 6320 level. In case this attempt is successful, SP500 will head towards the next support level, which is located in the 6280 – 6290 range.

NASDAQ

NASDAQ pulled back despite the strong performance of Advanced Micro Devices, which gained 5.5% in today’s trading session. Fortinet was the worst performer in the NASDAQ index. The shares dived 25% as traders reacted to the company’s quarterly report. Analysts rushed to downgrade Fortinet, putting additonal pressure on the stock.

NASDAQ failed to settle above the resistance at 23,450 – 23,500 and pulled back towards the support level at 23,150 – 23,200. In case NASDAQ declines below the 23,150 level, it will head towards the next support at 22,850 – 22,900.

Dow Jones

Dow Jones is losing ground as Saleforce  is down by 4.2%. The weak performance of financial stocks put additional pressure on Dow Jones.

Currently, Dow Jones is trying to settle below the support at 43,900 – 44,000. In case this attempt is successful, Dow Jones will head towards the next support level at 43,300 – 43,400. RSI is in the moderate territory, and there is plenty of room to gain additional downside momentum in case the right catalysts emerge.

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