NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As Non Farm Payrolls Beat Estimates

SP500

SP500 gains ground as traders react to the strong Non Farm Payrolls report. The report indicated that the economy added 177,000 jobs in April, compared to analyst forecast of 130,000. The previous reading was revised from 228,000 to 185,000. From a big picture point of view, the economy continued to create jobs at a robust pace despite trade wars. Unemployment Rate remained unchanged at 4.2% in April, in line with analyst consensus. Participation Rate increased from 62.5% to 62.6%, while analysts expected that it would stay at 62.5%. Average Hourly Earnings increased by 3.8% year-over-year, compared to analyst forecast of 3.9%. Today, traders also had a chance to take a look at Factory Orders report for March. The report indicated that Factory Orders increased by 4.3% on a month-over-month basis, compared to analyst forecast of 4.5%. Today’s rally was broad, and all market sectors moved higher in today’s trading session.

Currently, SP500 is trying to settle above the resistance at 5700 – 5710. In case this attempt is successful, SP500 will move towards the next resistance level at 5785 – 5795.

NASDAQ

NASDAQ rallied as traders reacted to job market data. Apple, which was down by 4.5%, was among the worst performers in the NASDAQ index today. The stock pulled back as traders reacted to the quarterly report and worried about the impact of tariffs.

In case NASDAQ stays above the 20,000 level, it will head towards the next resistance level at 20,350 – 20,400.

Dow Jones

Dow Jones is moving higher amid broad rally in the equity markets. Most stocks in the index gained upside momentum, while Apple was the notable loser.

If Dow Jones manages to settle above the 41,500 level, it will head towards the resistance level, which is located in the 42,000 – 42,100 range. RSI is in the moderate territory, and there is plenty of room to gain momentum in the near term.

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