Solid News
DJIA Market Update
2/21/2023 12:38 PMVolatility in the US stock market remains at high levels, and index quotes began to decline, despite the positive financial results of companies. The Dow Jones index is currently being corrected in the local trend at around 33719.0.
First of all, the negative dynamics was associated with the recent statements of US Federal Reserve officials. The President of the Federal Reserve Bank (FRB) of Cleveland, Loretta Mester, and the President of the St. Louis Fed, James Bullard, made clear "hawkish" statements about the March meeting of the American regulator, at which it was supposed not to change the interest rate. Immediately after their statements, the futures for the increase in the rate rose by 18%, which indicates a high probability of an increase in the value.
Today, two leading retail brands, Walmart Inc. and Home Depot Inc. report for the previous quarter. Walmart Inc. may show revenue growth from 152.80 billion dollars to 159.77 billion dollars. In turn, the revenue of Home Depot Inc. could fall from 38.90 billion dollars to 35.96 billion dollars, and earnings per share could drop from 4.24 dollars to 3.28 dollars.
The growth leaders in the index are Merck & Company Inc. (+2.83%), Amgen Inc. (+2.69%), UnitedHealth Group Inc. (+2.41%).
Among the leaders of the decline are Chevron Corp. (-2.23%), Intel Corp. (-2.09%), Salesforce Inc. (-1.75%).
On the daily chart, the index quotes continue their corrective dynamics, approaching the support line of the local rising channel.
Technical indicators are ready for a reversal and have almost given a new sell signal: the fluctuation range of the Alligator EMAs has narrowed almost completely, and the AO histogram is forming new correction bars, being below the transition level.
Support levels: 33300.0, 32500.0. | Resistance levels: 34100.0, 35000.0.