NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rallies As Apple Jumps 6.9%

SP500

SP500 gains ground as traders react to the weaker-than-expected Non Farm Payrolls report, which showed that the economy added 175,000 jobs in April. Unemployment Rate increased from 3.8% in March to 3.9% in April, compared to analyst consensus of 3.8%. ISM Services PMI report has also missed analyst expectations. The report indicated that ISM Services PMI declined from 52.0 in March to 49.4 in April, compared to analyst consensus of 51.4. Numbers below 50 show contraction. Treasury yields moved lower as bond traders focused on the disappointing economic data. If the U.S. economy slows down, the Fed may start cutting rates sooner than previously expected. That’s why SP500 and other major indices moved higher in today’s trading session. Stock traders are not worried about the potential slowdown of the U.S. economy and focus on the changes in Fed policy outlook.

SP500 settled above the resistance at 5100 – 5110 and is moving towards the 5150 level. In case SP500 settles above 5150, it will head towards the next resistance, which is located in the 5180 – 5190 range.

NASDAQ

NASDAQ rallied, boosted by the strong performance of Apple stock. Apple is up by 6.9% as traders reacted to the company’s earnings report. Apple revealed that iPhone sales dropped but announced a $110 billion share buyback plan, which served as the key bullish catalyst for the stock.

Currently, NASDAQ is trying to settle above the resistance at 17,800 – 17,900. In case this attempt is successful, NASDAQ will head towards the next resistance at 18,300 – 18,400.

Dow Jones

Dow Jones  gained upside momentum amid a broad rally in the equity markets. AMGEN, which was up by 11%, was the best performer in the Dow Jones index today. The stock rallied as the company highlighted progress in the development of its experimental obesity drug.

In case Dow Jones settles above the 38,800 level, it will head towards the next resistance, which is located in the 39,000 – 39,100 range.

For a look at all of today’s economic events, check out our economic calendar.