NASDAQ Index, SP500, Dow Jones Forecasts – Stocks Mixed After Jobs Data

Key Insights

• SP500 managed to stay above the 4700 level after the release of the better-than-expected ADP Employment Change report. 
• NASDAQ pulled back as traders reduced their exposure to tech stocks. 
• Dow Jones made an attempt to settle above the 37,700.

SP500

SP500 is mostly flat as traders react to economic reports. ADP Employment Change report indicated that private businesses added 164,000 jobs in December, compared to analyst consensus of 115,000. The report showed that labor market remained in a decent shape. Initial Jobless Claims declined from 218,000 to 202,000. Services PMI increased from 50.8 in November to 51.4 in December. Composite PMI improved from 50.7 to 50.9, supported by rising activity in the services sector.  Treasury yields were moving higher as traders remained focused on yesterday’s FOMC Minutes, which showed that Fed was not as dovish as traders expected. Fed policy outlook is the key catalyst for equity markets, so SP500 may need significant positive catalysts to rebound towards recent highs.

From the technical point of view, SP500 moved below the support at 4730 – 4750 and made an attempt to settle below 4700. If SP500 settles below the 4700 level, it may gain significant downside momentum.

NASDAQ

NASDAQ remained under pressure as the pullback in tech stocks continued. Traders cut their exposure to tech stocks as they are waiting for additional catalysts that could push NASDAQ to new highs after the strong rally in the last two months of 2023.

In case NASDAQ stays below the 16,400 level, it will head towards the next support, which is located in the 15,800 – 15,900 range.

Dow Jones

Dow Jones moved higher despite the strong sell-off in Walgreens Boots Alliance stock. Most Dow Jones components moved higher as traders were buying Healthcare, Financial, and Industrial stocks in today’s trading session.

Dow Jones received strong support in the 37,400 – 37,500 range and has a decent chance to gain upside momentum in case the right catalysts emerge.

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