NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Gains Ground As IBM Soars 12.2%

SP500

SP500 gains ground despite the weaker-than-expected GDP Growth Rate report. The report showed that GDP Growth Rate declined from 3.1% to 2.3%, compared to analyst consensus of 2.6%. Initial Jobless Claims report showed that 207,000 Americans filed for unemployment benefits in a week. From a big picture point of view, U.S. labor market stays strong. Today, traders also had a chance to take a look at Pending Home Sales report for December. The report indicated that Pending Home Sales decreased by 5.5% on a month-over-month basis, compared to analyst forecast of +4.0%. Most market sectors moved higher in today’s trading session. Utilities and real estate stocks were among the biggest gainers as traders focused on the pullback in Treasury yields.

SP500 settled above the 6050 level ad is trying to gain additional upside momentum. The nearest resistance level for SP500 is located in the 6090 – 6100 range. A move above the 6100 level will push SP500 towards the recent highs near the 6135 level.

NASDAQ

NASDAQ is swinging between gains and losses as Microsoft is down by 6% after the release of the earnings report. Traders sold the stock as the company noted that its cloud business would miss third-quarter estimates. Traders are also worried about high AI spending.

In case NASDAQ manages to settle above the resistance at 21,550 – 21,600, it will move towards the next resistance level at 21,900 – 21,950.

Dow Jones

Dow Jones continues its attempts to settle above the resistance at 44,900 – 45,000 as IBM  gains 12.2%. The stock tested historic highs after beating analyst estimates on both earnings and revenue.

A successful test of the resistance at 44,900 – 45,000 will provide Dow Jones with an opportunity to gain additional upside momentum and move towards the 45,500 level.

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