NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Gain Some Ground As Earnings Season Begins

SP500 moved higher as traders reacted to banks’ earnings reports.
NASDAQ gained ground as demand for tech stocks remained strong.
Dow Jones pulled back as Unitedhealth Group dived 3.5% after the earnings report.

SP500

SP500 120124 4h Chart

SP500 gained some ground as traders reacted to Producer Prices data and banks’ earnings reports. PPI decreased by 0.1% month-over-month in December, compared to analyst consensus of +0.1%. Core PPI remained unchanged. Today, traders also focused on reports from JPMorgan, Wells Fargo, Bank of America, and Citigroup. JPMorgan and Citigroup moved higher, while Wells Fargo and Bank of America found themselves under pressure. From a big picture point of view, banks’ profits declined in the fourth quarter. Nevertheless, general market sentiment remains bullish, supported by falling Treasury yields. Bond traders bet that Fed will start cutting rates in March, which is bullish for stocks.

SP500 continues its attempts to settle above the 4800 level. If SP500 settles above 4800, it will get to the test of the resistance at 4810 – 4820.

NASDAQ

NASDAQ 120124 4h Chart

NASDAQ has also moved higher in today’s trading session. Interestingly, Tesla was the main loser in the NASDAQ index. The stock is down by 3.8% as the company is forced to halt production in Germany due to supply chain problems, which were caused by tensions in Red Sea.

If NASDAQ stays above the 16,800 level, it will move towards the next resistance level at 16,950 – 17,000.

Dow Jones

Dow Jones 120124 4h Chart

Dow Jones is under pressure due to the pullbacks in Unitedhealth Group and Boeing stocks. Unitedhealth Group is down by 3.5% after the earnings report, while Boeing remains under pressure as traders stay focused on the problems of 737 MAX 9.

If Dow Jones declines below the nearest support at 37,400 – 37,500, it will move towards the next support level, which is located in the 36,900 – 37,000 range.

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

About the Author

Vladimir Zernovauthor

Vladimir is an independent trader, with over 18 years of experience in the financial markets. His expertise spans a wide range of instruments like stocks, futures, forex, indices, and commodities, forecasting both long-term and short-term market movements.