NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Climbs Above 40,500 As 3M Soars 21%

SP500

SP500 gains ground as traders react to PCE Price Index report, which showed that PCE increased by 0.1% month-over-month in June. Core PCE increased by 0.2%, compared to analyst consensus of +0.1%. Today, traders also had a chance to take a look at Personal Income and Personal Spending reports. Personal Income increased by 0.2% month-over-month in June, while Personal Spending grew by 0.3%. The final reading of Michigan Consumer Sentiment report showed that Consumer Sentiment declined from 68.2 in June to 66.4 in July, compared to analyst forecast of 66. Treasury yields moved lower as bond traders bet on less hawkish Fed ahead of the Fed decision, which will be released next week. Falling Treasury yields provided additional support to SP500.

If SP500 stays above the support at 5450 – 5465, it will head towards the nearest resistance level, which is located in the 5520 – 5530 range.

NASDAQ

NASDAQ continues its attempts to settle back above the support at 19,000 – 19,100. Charter Communications, which was up by 14.3%, was the best performer in the NASDAQ index today. The stock gained upside momentum as the company’s second-quarter report beat analyst estimates.

In case NASDAQ climbs above the 19,100 level, it will move towards the resistance at 19,600 – 19,650. On the support side, a move below 19,000 will push NASDAQ towards the support at 18,500 – 18,600.

Dow Jones

Dow Jones tested new highs, supported by the rally in 3M stock. 3M is up by 21% after beating analyst estimates and raising the lower end of its full-year guidance.

From the technical point of view, Dow Jones has recently managed to settle above the 50 MA at 40,522. In case Dow Jones climbs above the recent highs near the 40,750 level, it will head towards the nearest resistance at 41,300 – 41,400.

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