NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Ground As Non Farm Payrolls Exceed Expectations

SP500

SP500 gained ground as traders reacted to the strong Non Farm Payrolls report. The report indicated that U.S. economy added 254,000 jobs in September, compared to analyst forecast of 140,000.  Unemployment Rate declined from 4.2% to 4.1%, compared to analyst forecast of 4.2%. Participation Rate remained unchanged at 62.7%, while Average Hourly Earnings increased by 0.4% on a month-over-month basis. Overall, the reports showed that U.S. job market remained in decent shape. Most market sectors gained ground in today’s trading session, although real estate stocks have found themselves under pressure as Treasury yields moved towards multi-week highs.

Interestingly, the technical picture remains unchanged. SP500 is stuck in a range between the support at 5660 – 5680 and the resistance at 5735 – 5750. SP500 needs to settle above the 5750 level to have a chance to gain sustainable upside momentum in the near term.

NASDAQ

NASDAQ moved higher as traders focused on the encouraging job market data. Rising Treasury yields did not put any pressure on the index today.

NASDAQ moved towards the nearest resistance level, which is located in the 20,000 – 20,100 range. This resistance level has already been tested several times and proved its strength. RSI is in the moderate territory, so there is enough room to gain momentum in case NASDAQ manages to settle above the 20,100 level.

Dow Jones

Dow Jones tests resistance at 42,100 – 42,200 as traders react to economic reports. JPMorgan Chase and American Express stocks are the biggest gainers in the Dow Jones index today. Bank stocks are moving higher amid rising demand for financial stocks.

From the technical point of view, Dow Jones needs to settle above the 42,200 level to gain additional upside momentum and move towards the recent highs near the 42,600 level. A move above 42,600 will push Dow Jones towards the 43,000 level.

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