NASDAQ Index, SP500, Dow Jones Analysis – Stocks Move Higher As Traders Prepare For Inflation Data

Key Insights

• SP500 settled near the 4430 level as traders prepared for tomorrow’s inflation reports. 
• NASDAQ remained stuck near the 15,000 level. 
• Dow Jones moved towards the 34,200 level. 

SP500

SP500 gained ground as traders prepared for tomorrow’s inflation reports. Analysts expect that Inflation Rate declined from 4% in May to 3.1% in June, while Core Inflation Rate decreased from 5.3% to 5.0%. The yield of 10-year Treasuries pulled back ahead of CPI data, providing some support to major indices. Traders are not ready for big moves ahead of the important report, but the general sentiment remains bullish. The Fed is expected to raise the interest rate by 25 bps at the meeting in July, and traders believe that it would be the last rate hike in this cycle.

From the technical point of view, SP500 is trying to settle above the resistance in  the 4430 – 4450 area. This is a strong resistance level so bulls will likely have to wait for tomorrow’s reports before they have a chance to push SP500 above 4450.

NASDAQ

NASDAQ is also moving higher in today’s trading session. However, traders stay cautious ahead of the inflation reports. Activision Blizzard, which is up by 10%, is the only notable gainer in the NASDAQ index today. The stock rallied as the federal judge ruled that Microsoft can close the acquisition of the company.

NASDAQ remains stuck near the 15,000 level as traders wait for additional catalysts. The index settled below the 50 MA at 15,115, and NASDAQ will have to climb above this level to gain additional momentum.

Dow Jones

Dow Jones moved closer to the 34,200 level as the rebound continued. Today’s rally is led by 3M Company, which is up by 4.5%.

In case Dow Jones manages to settle above the resistance in the 34,200 – 34,250 area, it will gain additional upside momentum and move towards the next resistance level, which is located in the 34,500 – 34,600 range.

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