NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Retreat Despite Lower-Than-Expected Core CPI Data

SP500

SP500 pulled back as traders reacted to inflation data and worried about Trump’s idea to cap interest rates on credit cards at 10%. Inflation Rate remained unchanged at 2.7% in December, in line with analyst expectations. Core Inflation Rate was unchanged at 2.6%, compared to analyst forecast of 2.7%. The reports indicated that inflation remained under control. Today, traders also had a chance to take a look at the New Home Sales report for October. The report showed that New Home Sales decreased by -0.1% on a month-over-month basis. Financial stocks were among the biggest losers today as traders remained focused on potential problems of banks’ credit card business. JPMorgan Chase, which was down by 3.8%, was among the biggest losers. The stock pulled back as traders reacted to the weaker-than-expected earnings report. Energy stocks gained strong momentum as traders focused on the rally in the oil markets, which was triggered by worries about a potential U.S. strike against Iran.

The nearest support level for SP500 is located in the 6940 – 6950 range. In case SP500 manages to settle below the 6940 level, it will head towards the next support at 6870 – 6880.

NASDAQ

NASDAQ is losing ground as traders take some profits off the table near historic highs. Inflation data did not serve as a positive catalyst for NASDAQ as traders focused on the pullback in the financial sector.

A move below the 50 MA at 25,563 will open the way to the test of the support level at 25,200 – 25,250.

Dow Jones

Dow Jones is losing ground amid broad pullback in the equity markets. Salesforce, which is down by 7%, is the worst performer in the Dow Jones index today.

In case Dow Jones settles below the 50 MA at 49,026, it will move towards the support level at 48,700 – 48,800.

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