NASDAQ Index, SP500, Dow Jones Forecasts – Dow Jones Retreats As Unitedhealth Dives 5.6%

SP500

SP500 pulls back as traders focus on the weaker-than-expected Retail Sales report. The report indicated that Retail Sales increased by 0.4% month-over-month in November, compared to analyst consensus of +0.6%. On a year-over-year basis, Retail Sales increased by 3.9%, while analysts expected that they would grow by 4.0%. Retail Sales Ex Autos increased by 0.4%, in line with analyst estimates. Today, traders also had a chance to take a look at NAHB Housing Market Index report. The report showed that NAHB Housing Market Index increased from 46 in December to 47 in January, compared to analyst forecast of 45. Treasury yields moved lower as bond traders focused on the Retail Sales data and bet on a less hawkish Fed. However, falling yields did not provide support to stocks as traders decided to take some profits off the table after the recent rally. Demand for safe-haven assets increased, and utilities stocks were among the biggest gainers today.

If SP500 settles back below the 5950 level, it will move towards the nearest support level, which is located in the 5910 – 5920 range.

NASDAQ

NASDAQ pulled back as traders sold mega-cap stocks. Tesla, Apple, NVIDIA, and Alphabet were among the biggest losers in the NASDAQ index today.

Currently, NASDAQ is trying to settle below the support at 21,150 – 21,200. In case this attempt is successful, it will head towards the next support level at 20,750 – 20,800. RSI is in the moderate territory, and there is plenty of room to gain momentum in case the right catalysts emerge.

Dow Jones

Dow Jones  faced strong resistance near the 43,300 level and pulled back. The pullback was led by Unitedhealth Group, which was down by 5.6%. The stock found itself under strong pressure as traders reacted to the company’s earnings report and focused on rising patient care costs.

If Dow Jones settles below the 43,100 level, it will move towards the support level, which is located in the 42,700 – 42,800 range.

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