NASDAQ Index, SP500, Dow Jones Forecasts – NASDAQ Rebounds Ahead Of Apple’s Earnings Report

Key Insights

• SP500 rebounded towards the 4900 level as traders reacted to the better-than-expected PMI reports. 
• NASDAQ moved higher as traders focused on the upcoming reports from Amazon, Apple, and Meta. 
• Dow Jones moved above the 38,400 level as Merck gained 4.3% after the strong earnings report. 

SP500

SP500 rebounds after yesterday’s pullback. Treasury yields are moving lower as traders bet that inflation will stay under control and Fed would be able to start cutting rates soon. Today, traders also focused on PMI reports. The final reading of S&P Global Manufacturing PMI indicated that Manufacturing PMI increased from 47.9 in December to 50.7 in January, compared to analyst consensus of 47.2. ISM Manufacturing PMI improved from 47.4 in December to 49.1 in January, while analysts expected that it would decline to 47.

From the technical point of view, SP500 received strong support in the 4850 – 4865 range and is heading towards the nearest resistance at 4900 – 4910. A move above the 4910 level will provide SP500 with a chance to gain additional upside momentum.

NASDAQ

NASDAQ gains ground as traders prepare for Big Tech earnings. Amazon, Apple, and Meta will release their earnings reports today, after the market close. These stocks are moving higher as traders bet that companies would beat analyst estimates and present strong guidance.

In case NASDAQ climbs above the 17,300 level, it will head towards the nearest resistance, which is located in the 17,450 – 17,500 range.

Dow Jones

Dow Jones  gained ground, supported by the strong performance of Merck stock. The company’s shares are up by 4.3% as traders react to the earnings report, which beat analyst estimates. In addition, Merck presented impressive guidance.

Dow Jones needs to settle above the resistance at 38,500 – 38,550 to gain additional upside momentum in the near term.

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