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- The Dow Jones continues to climb above the 39,000.00 level just after mixed data on Thursday.
- US data came in mixed on Thursday, leaving the US market session in an awkward position.
- Investors are now focused on the US personal consumption expenditures inflation reading on Friday.
The Dow Jones Industrial Average (DJIA) was trading sideways on Thursday, posting temporary gains but facing downside as traders grappled with mixed U.S. data. Initial jobless claims in the U.S. came in better than expected but still at the higher end of recent figures, while U.S. personal consumption expenditures (PCE) rose faster than expected in the first quarter. Stocks Investors will now await Friday’s US personal consumption expenditures price index, which is still expected to show a general easing in underlying price pressures in May.
US initial jobless claims for the week ending June 21 came in better than expected, showing 233,000 new jobless claimants compared to expectations of 236,000, down slightly from 238,000 the previous week. The four-week average for initial unemployment claims jumped to 236,000, putting the most recent week-on-week figure below the running average.
we Gross Domestic Production GDP beat expectations on Thursday, with first-quarter GDP revised slightly higher to 1.4% from the initial reading of 1.3%. Core personal consumption expenditures also rose slightly in the first quarter, rising to 3.7% on a quarterly basis versus expectations of 3.6%. The upcoming presidential debate on Thursday, which is scheduled to begin after the market closes today, will draw some attention as investors watch for potential policy hints from the candidates.
Friday’s US personal consumption price index reading will be the key data figure this week as investors hope for continued slowing US inflation figures to help drive Federal Reserve (The US central bank) is moving closer to cutting interest rates. Under the current cut, the core personal consumption expenditures (PCE) price index is expected to fall to 0.1% month-on-month in May from 0.2%.
Dow Jones News
The Dow Jones Industrial Average posted a small gain on Thursday after a strong rally in familiar favorites, but overall securities remained mixed. About half of the Dow’s constituent stocks fell on the day, with losses led by Merck & Co Inc. (MRK), which fell 2.25% to $128.55 a share and lost about three points on Thursday.
On the upside, Salesforce Inc. (CRM) stock rose about 6% to $256.82 per share as the company prepares for its latest shareholder meeting on Thursday.
Dow Jones Technical Forecast
The Dow Jones shrugged off an early decline on Thursday, rising to a slight gain in the 39,250.00 area. However, the upside momentum remains tepid, and the major stock index is settling into a soft volatility pattern in intraday trading.
Daily candles remain holding the chart paper north of the 50-day Exponential Moving Average (EMA) at 38,889.40, but upside momentum remains limited and speculators are losing steam as the index trades south of its recent historical highs around the key 40,000.00 price level.
Dow Jones five-minute chart
Dow Jones daily chart
Economic indicator
Core Personal Consumption Expenditures – Price Index (Monthly)
Core Personal Consumption Expenditures (PCE), issued by US Bureau of Economic Analysis On a monthly basis, it measures changes in the prices of goods and services purchased by consumers in the United States. The Personal Consumption Expenditures Price Index is also the Fed’s preferred measure of inflation. The monthly figure compares commodity prices in the reference month with the previous month. The core reading excludes the more volatile so-called food and energy components to give a more accurate measure of price pressures. In general, a high reading is considered bullish for the US Dollar (USD), while a low reading is considered bearish.
