Dow Jones Ends Flat This Week:
The trading week is about to end and the Dow Jones is up by around 0.7% for the week which is marginally positive. The United States markets have been consolidating for many weeks now and the index is about to close above an important resistance level. Yesterday, the Dow Jones broke the 13,500 mark which acted as a crucial resistance level in the past and is now trading briefly above that mark.
If the Dow Jones closes well above that mark for the week, we may see higher levels on the index in the coming days. The results season has so far been good and this will most possibly continue going forward. Some of the results were weak. Banks like Bank of America and Citi group posted weak results but this sentiment is clearly offset by the United States data and some good results from the tech stocks.
Gorman, analysts at JP Morgan, said, “The individual investors haven’t pulled money out of firms like ourselves. So it’s not a total despair of the markets. It’s a confusion and uncertainty.”
He feels that many investors are waiting on the side lines and anticipating a small up move to get into the markets. He also added, “The money is still there. They’re waiting for good ideas. We can still move higher from here. The U.S. economy is recovering. That’s unmistakable. The speed of it still remains to be determined.”
The Dow Jones needs to close above 13,500 level this week to see higher levels in the near future. On the down side, we got clear supports at 13,000 and the 12,600 level. The down side is quite clearly restricted on the index. Many analysts feel that the market wouldn’t go below 13,000 so easily in the coming days.
The consolidation phase is most likely finished and the markets are most likely to go higher than the current levels.
Millan Mulraine, a macro strategist at TD Securities, said, “The deterioration in sentiment is a stark reminder of the debilitating impact that the ongoing uncertainty created by the political dysfunction in Washington is having on household’s mood.”
The analyst feels that the consumer sentiment is going to weaken further in the coming months. He also added, “If the uncertainty persists and confidence deteriorates further, it is likely to have a more lasting dampening effect on spending.”
Stocks to watch out for:
General Electric is in the news today as the company reported a strong set of numbers in the fourth quarter. The revenues and profits, both exceeded market expectations. Net income rose to 4 billion dollars. The stock was up nearly 3% and was trading at $21.95 per share, last time we checked.
The company is spending and focusing more on the oil and gas equipment, which made profits increase by a healthy margin. The company’s CEO Jeff Immelt, said, “The outlook for developed markets remains uncertain, but we are seeing growth in China and the resource rich countries.”
I hope you enjoyed our article on ‘Dow Jones Ends Flat This Week‘. Check out another article on Boeing company’s worries.
Dow Jones Ends Flat This Week