Stock Market Today
The U.S. stocks closed towards their highs of the day yesterday, based on the optimism that Trump will leave the hospital soon. There are still hopes for more stimulus from lawmakers. President Trump is also likely to attend the second debate and this shows that the president is going to get on with the presidential trail soon.
Over in Asia, the stock market mostly closed in positive territory. The Shanghai index gained 0.2%. The Nikkei stock index also jumped higher by 0.52%, while the Korean Kospi soared 0.28%. The Hong Kong’s HSI Nikkei Index increased by 0.85%.
Dow Jones and SP500: Market Breadth
The Dow Jones’ market breadth strengthened yesterday. 67% of the Dow Jones stocks traded above their 200-day moving average.
The S&P 500 stock breadth also gained additional momentum. 64% of the shares traded above their 200-day moving average. This is a change of +3% from a day earlier.
Dow Jones Futures Today
The Dow Jones futures are trading lower by 50 points. Traders and investors will be paying attention to Fed Chairman, Jerome Powell’s speech. The U.S. ISM services PMI number was a lot more encouraging than what the market was expecting. But this is just one reading which came in better than the anticipation, and it is unlikely to change the Fed’s tone. What is important to note here, is what the Fed will say about the recent rise in coronavirus cases.
Should You Buy or Sell Stocks?
The Dow Jones futures have firmly closed above the 50-day simple moving average, a technical level which is considered important among traders, on the daily timeframe. This shows that the bulls are firmly in control of the price The Dow Jones futures are also trading above the 100 and 200-day SMA, which further confirms the above argument.
The S&P 500 futures, the wider representation of the U.S. equity market, are also trading above the 50-day SMA on the daily timeframe. The next possible resistance for the S&P 500 is at 3419. If the price breaks above this resistance, then it is likely for the price to continue its journey towards the all-time high.
Stock Market Rally
The S&P 500 stock index closed sharply higher yesterday, the index gained 1.74%. The energy sector led the index higher, and 11 sectors closed higher.
The Dow index also posted some solid gains yesterday, and the Dow stocks moved the index higher by 1.68%. All 30 shares closed higher.
The NASDAQ composite, a tech-savvy index, gained 2.25% yesterday.
SP 500 Leaders and Laggards: Regeneron, D.R. Horton
Regeneron stock contributed the biggest gain, soaring 6.69% as it was validated by Donald Trump as part of his treatment.. D.R. Horton stock was the largest drag; it fell by 2.76%. The S&P 500 stock index is up 1.61% over the past 5 days.
Dow Jones Leaders and Laggards: Amgen and Coca-Cola
Amgen stock advance higher by 4.363%, and was the biggest mover for the Dow, while Coca-Cola stock dropped 0.05%, the biggest drag for the Dow Jones industrial average index.