NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Rally As Nonfarm Payrolls Increase By 147,000

SP500

SP500 tested new highs as traders reacted to the better-than-expected Non Farm Payrolls report. The report showed that the economy added 147,000 jobs in June, compared to analyst consensus of 110,000. Unemployment Rate decreased from 4.2% in May to 4.1% in June, while analysts expected that it would grow to 4.3%. The strong job market data pushed Treasury yields higher as bond traders reduced bets on dovish Fed. However, rising Treasury yields did not put any pressure on stocks as traders focused on the strength of the job market. Today, traders also had a chance to take a look at ISM Services PMI report for June. The report indicated that ISM Services PMI increased from 49.9 to 50.8, compared to analyst forecast of 50.5. Numbers above 50 show expansion. The rally was broad, and most market sectors gained ground in today’s trading session. Energy stocks were mostly flat as traders reacted to pullbacks in natural gas and oil markets.

From the technical point of view, SP500 climbed above the 6250 level and moved towards the resistance at 6280 – 6290. A move above the 6290 level will open the way to the test of the 6350 level.

NASDAQ

NASDAQ rallied as traders focused on U.S. economic reports. The index settled above the previous resistance at 22,550 – 22,600 and climbed towards the next resistance level at 22,850 – 22,900.

Traders should note that RSI has recently moved into the overbought territory, so the risks of pullback are increasing.

Dow Jones

Dow Jones tested new highs amid broad rally in the equity markets. Traders remained bullish ahead of the long weekend.

In case Dow Jones stays above the resistance at 44,600 – 44,700, it will gain additional upside momentum and head towards the next resistance level, which is located in the 45,000 – 45,100 range.

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