Swing Trading Strategies & Stock Picks Since 2003

Dow Jones Industrial Average

 

 

Key Statistics

Open: 8331.37

High: 8361.23

Low: 8285.20

Close: 8359.49

Change: +27.81 (+0.33%)

Prev Close: 8331.68

RSI: 51.42

MACD: -64.03

 

Snapshot

• Dow ended +27.81(+0.33%) points higher, S&P 500 up 0.53% and Nasdaq up 0.36%
• Goldman Sachs, Intel  and Johnson & Johnson results beat expectations
• Intel sees strong second half 2009 and jumps more than 7% after the bell
• June retails sales data signals weak demand

 

 

Current Market view – Cautious

 

 

Market Strategy

Market Commentary

Stocks managed modest gains after better than expected corporate results boosted investor confidence and over shadowed week retails sales data.

 

Goldman Sachs reported results which beat all expectations. The bank said that it earned $3.44 billion in the second quarter versus $2.1 billion an year ago. The results failed to lift the market as the markets had already discounted the results in the huge rally on the previous day.

 

Intel reported excellent results after the closing bell on Tuesday. The chipmaker said that it sees strong demand in second half of Q9. Stock surged more than 7% in extended trade.

 

Encouraging comments from CSX Corp’s Chief Executive and better than expected results from Johnson & Johnson also helped the market to close in positive territory.

 

June retail sales increased 0.6 percent, which was more than forecast, but a big part of that gain was due to rising gasoline prices. Excluding autos and gas sales, retail sales registered a fourth consecutive monthly decline.

 

The producer price index (PPI), a measure of wholesale inflation, jumped 1.8% in June.

 

Volume was light on the New York Stock Exchange, with only about 979 million shares changing hands, sharply below last year's estimated daily average of 1.49 billion, while on the Nasdaq, about 1.91 billion shares traded, below last year's daily average of 2.28 billion.

 

 

The Day Ahead

The Consumer Price Index for June is set for release at 8:30 a.m. In addition to CPI data, June industrial production and capacity utilization data are due at 9:15 AM.

On Wednesday afternoon, The Fed will release the minutes from the Federal Open Markets Committee's two-day policy-setting meeting in late June.

 

The intermediate trend remains bearish and there is weakness in the market. Better than expected quarterly results can lift the sentiment in coming few days. Any weakness should be used to buy the markets.