US NFP data under focus

Global Stock Market Today The global stock futures are swinging between gains and losses as traders aren’t sure what to make of the massive sell-off that we experienced yesterday. In addition to this, we also have the U.S. NFP data due later today at 1:30 PM BST. The forecast for […]

Global Stock Market Today

The global stock futures are swinging between gains and losses as traders aren’t sure what to make of the massive sell-off that we experienced yesterday. In addition to this, we also have the U.S. NFP data due later today at 1:30 PM BST. The forecast for the headline number is 1.37 million while the previous reading was at 1.76 million. What is quite important is that the U.S. unemployment rate is expected to fall in single-digit territory, the forecast is for 9.8% while the previous reading was 10.2%.

Stocks in Asia plunged on the final trading day of the week. The Shanghai index declined by 0.87%. The HSI stock index also moved lower by 1.04%. The Korean Kospi fell by 1.15%. The Japanese Nikkei Index dropped 1.11%.

The U.S. NFP Play

A strong U.S. NFP number is likely to support the stock market rally as traders will think that there is a gradual recovery for the U.S. economy. However, a weaker number may make the sell-off intense as traders will anticipate that the U.S. stock market has gone too far and too fast. It could be the Nasdaq Composite index which may lead the losses for the Coronavirus stock market rally.

Dow Index and SP500 Index: Market Breadth

The U.S. stock market’s breadth lost some serious bull strength yesterday. 57% of the Dow Jones stocks traded above their 200-day moving average yesterday. This is a change of -3% from a day earlier.

The S&P 500 stock breadth also experienced weakness yesterday. 61% of the shares traded above their 200-day moving average yesterday. This is a -3% change from a day earlier.

Dow Jones and SP 500 Futures Today

The Dow Jones futures are trading higher by 68 points. The U.S. stock futures have spent most of the early trading price action in negative territory, but the positive price action of the European markets is helping the U.S. futures. Investors are considering the current sell-off as an opportunity.

The Dow Jones futures erased their weekly gains despite putting a higher high on a weekly time frame. The Dow’s price is still trading above the 50, 100, and 200-day SMA on a daily time frame and as long as this remains in place, bulls are likely to remain in charge of the price action. Dow Jones’s price still hasn’t been able to reach its all-time but a strong U.S. NFP reading today could help the index’s price to have another attempt at an all-time high.

The S&P 500 futures, the broader image of the U.S. equity market, experienced a serious sell-off yesterday. Just like the Dow Jones, the S&P 500’s weekly price action also confirms that the index has erased all of its weekly gains. The immediate support level for the index is 3396, which is the pre-COVID-19 high. In a daily time frame, the price is closing its gap with respect to its 50-day SMA which means that if the sell-off continues, the price has the potential to touch the 3328 price level.

Stock Market Rally

The S&P 500 stock index fell off the cliff yesterday and experienced an intense meltdown as it went down by 3.51%. The consumer discretionary sector led the index lower, and all eleven closed lower.

Carnival stock contributed the biggest gain, soared 5,21%. Qorvo stock was the largest drag; it fell by 9.82%. The S&P 500 stock index is up 11% during this quarter.

The Dow index also plunged by 807 points yesterday, and the Dow stocks moved the index lower by 2.78%. 2 Dow Jones Index stocks increased in value, and 28 moved lower. The Verizon stock advanced higher by 0.13% and was the biggest mover for the Dow, while The Microsoft stock dropped 6.19%, the biggest drag for Dow Jones industrial average index.

The NASDAQ composite, a tech-savvy index, moved lower by 5.23% yesterday.

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