NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Gains Ground As Intel Soars 8.5%

SP500

SP500 gains ground as traders react to the Non Farm Payrolls report, which indicated that U.S. economy added 12,000 jobs in October. Analysts expected Non Farm Payrolls of 113,000, so the report missed analyst estimates. The report was surprising as the recent ADP Employment Change report showed that private businesses added 233,000 jobs in October. The Non Farm Payrolls data is typically more accurate, but the major difference between the two reports is confusing. Unemployment Rate remained unchanged at 4.1%, in line with analyst estimates. Today, traders also had a chance to take a look at the ISM Manufacturing PMI report for October. The report showed that ISM Manufacturing PMI declined from 47.2 in September to 46.5 in October, compared to analyst forecast of 47.6. From a big picture point of view, traders focused on the weak Non Farm Payrolls data and bet that Fed will be more dovish, providing support to equity markets.

If SP500 settles back above the support level at 5735 – 5750, it will head towards the next support level, which is located in the 5800 – 5810 range.

NASDAQ

NASDAQ is moving higher, supported by rising demand for tech stocks. Atlassian Corporation, which is up by 19.8%, is the biggest gainer in the NASDAQ index today. The stock gained strong upside momentum as the company beat earnings estimates and raised annual revenue forecast.

A move above the 20,100 level will push NASDAQ towards the 50 MA at 20,309. If NASDAQ climbs above the 50 MA, it will head towards the resistance at 20,700 – 20,800.

Dow Jones

Dow Jones gained ground as Intel rallied 8.5% despite missing analyst estimates. Traders feared that the company’s results would be worse.

A successful test of the resistance at 42,100 – 42,200 will push Dow Jones towards the next resistance level at 42,600 – 42,700.

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