- The Dow Jones slipped back below 43,000 on Tuesday.
- Markets are softer on Tuesday after ripping into new records this week.
- Weak points in tech sector are leading equities lower despite broad earnings beats.
The Dow Jones Industrial Average (DJIA) trimmed lower on Tuesday despite starting the day with a fresh all-time peak bid. The major equity index declined back below the 43,000 major handle through the US market session as chipmakers, health services companies, and the energy sector drag averages lower.
Earnings season is well underway in US equities, with roughly 80% of all reporting companies beating market analyst expectations. However, some dark points are still clouding the skies, with key healthcare and semiconductor producers posting worse-than-expected results in the third quarter.
The economic calendar remains tepid on US data until September’s Retail Sales figures release on Thursday, leaving investors to focus on regular appearances from Federal Reserve (Fed) policymakers that dot the landscape throughout the week. Energy sector stocks broadly eased after the US announced it had secured assurances that Israel won’t be targeting Iranian Crude Oil or nuclear energy facilities as the ongoing Middle East geopolitical conflict roils on.
Dow Jones news
Despite a sharp pullback in key sectors on Tuesday dragging equity indexes lower, most of the Dow Jones listed securities are trading into the green for the day, with losses contained within the bottom third of stocks. Boeing (BA) rebounded 2.3% to trade above $152 per share on Tuesday, recovering from the week’s low below $147.
Unitedhealth Group (UNH) tumbled nearly 7%, backsliding below $565 per share after it revised its full-year earnings outlook lower. Intel (INTC) also swooned on Tuesday, easing over 2% lower and falling below $23 per share in a knock-on bearish slide after Dutch semiconductor producer ASML (ASML) accidentally released its quarterly earnings early. ASML handily beat performance expectations but revealed unexpected weakness in the semiconductor market associated with chipmakers. ASML’s re-tuned forward guidance for 2025 sees a growing soft patch from tech subsectors associated with chipboards and AI tech.
Dow Jones price forecast
Despite a downturn in Tuesday’s overall bids, the Dow Jones continues to grind out fresh highs on the top side. The major equity index hit a new all-time peak bid early Tuesday of 43,175 before bearish sentiment in key equities dragged the DJIA back below the 43,000 handle.
Despite shedding roughly one-third of a percent on Tuesday, the Dow Jones remains firmly buried in bullish territory. The index is up nearly 15% bottom-to-top for the year, with bulls entirely outrunning the 200-day Exponential Moving Average (EMA) since November of 2023, which is struggling to catch up to current price action as the long-run average grinds north of 39,400.
Dow Jones daily chart
Economic Indicator
Retail Sales (MoM)
The Retail Sales data, released by the US Census Bureau on a monthly basis, measures the value in total receipts of retail and food stores in the United States. Monthly percent changes reflect the rate of changes in such sales. A stratified random sampling method is used to select approximately 4,800 retail and food services firms whose sales are then weighted and benchmarked to represent the complete universe of over three million retail and food services firms across the country. The data is adjusted for seasonal variations as well as holiday and trading-day differences, but not for price changes. Retail Sales data is widely followed as an indicator of consumer spending, which is a major driver of the US economy. Generally, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.
Next release: Thu Oct 17, 2024 12:30
Frequency: Monthly
Consensus: 0.3%
Previous: 0.1%
Source: US Census Bureau
