Investors are optimistic today, and they are feeling good that governments across Europe are implementing the right measures to stop the further spread of coronavirus. No one wants to see the situation getting to a point similar to how it was at the beginning of the month. In addition to this, traders are also anxious about the U.S. elections, and volatility is likely to remain high in the next 48 hours or so.
The Asian stock market closed higher today. The ASX 200 index closed with a gain of 0.40%. The Korean KOSPI index also moved higher by 1.46%, while the Nikkei index advanced by 1.38%. The Shanghai index rose by 0.02%.
Dow Jones and S&P 500: Market Breadth
The Dow Jones’ market breadth remained unchanged on Friday. 50% of the Dow Jones stocks traded above their 200-day moving average. This is a change of 0% from a day earlier.
The S&P 500 stock breadth continued to weaken. 57% of the shares traded above their 200-day moving average. This is a change of -2% from a day earlier.
Dow Jones Futures Today
The Dow Jones Futures are trading higher by 30 points today. In terms of economic data, investors will be looking at the U.S. ISM manufacturing data, which is due later today. The number is expected to remain in the expansionary territory, and may print the reading of 55.6 against the previous number of 55.
The Dow Jones futures are trying to form a bottom on the daily time frame. The fact that the price is still trading above the 200-day SMA on the daily time frame is an encouraging sign. However, bulls have lost a lot of momentum as the price is trading below the 50 and 100-day SMA. The RSI is trading in an oversold zone, and this means that Dow futures may find some bargain hunters.
The S&P 500 Futures, which represent the broader stock market, have started the week on a positive note, and the S&P 500 is trading higher today. There is no doubt that the S&P 500 has been under tremendous pressure over the last few weeks, but the price is still above the 50, 100, and 200-week SMA on the weekly time frame. This confirms that investors do not need to worry much, as bulls are in control of the price.
Stock Market Rally
The S&P 500 stock index closed in negative territory on Friday; the index dropped by 1.21%. The consumer discretionary sector led the index lower - 9 out of 11 sectors closed lower.
The Dow index also fell on Friday; the Dow stocks moved the index lower by 0.59%. 17 shares of the Dow fell, and 13 closed higher.
The NASDAQ composite, a tech-savvy index, fell the most on Friday, and it closed with a loss of 2.45% yesterday.
S&P 500 Leaders and Laggards: Twitter and Mohawk
Mohawk stock contributed the biggest gain, soaring 10.9%. Twitter stock was the largest drag; it fell by 21.1%. The S&P 500 stock index is up 6.62% so far this year.
Dow Jones Leaders and Laggards: {0|Apple}} and IBM
IBM (NYSE:IBM) stock advanced higher by 2.53% and was the biggest mover for the Dow, while Apple (NASDAQ:AAPL) stock declined 5.6%, the biggest drag for Dow Jones Industrial Average index.