Bank earnings remain in focus today. The hope is to see lower loan provisions and higher trading revenue. Investors are likely to remain cautious as there is not much hope for another stimulus package becoming a reality this week, and there is also a halt in potential coronavirus vaccine from Johnson & Johnson (NYSE:JNJ).
The Asian stock market closed mixed mainly lower today. The Shanghai index declined 0.56%. The Korean KOSPI stock index also moved lower by 0.94%, while the HIS index declined 0.07%. The Nikkei index advanced 0.11%.
Dow Jones and S&P 500: Market Breadth
The Dow Jones’ market breadth maintained its strength yesterday. 77% of the Dow Jones stocks traded above their 200-day moving average.
The S&P 500 stock breadth continued to gain more strength. 73% of the shares traded above their 200-day moving average. This is a change of +1% from a day earlier.
Dow Jones Futures
In terms of economic data, investors will be looking at the mortgage applications data. We also have the U.S. core PPI numbers due at 1:30 BST and the forecast is for 0.9% against the previous reading of 0.6%.
The Dow Jones futures are hesitating to retest the recent high of 29178, formed back in August 30. After scoring five consecutive days of gains, the Dow Jones index recorded negative yesterday. This may not be anything more than just profit taking as the price is still trading above the 50, 100 and 200-day SMA on the daily time frame. The support is at 28417, and the resistance is at 29164.
The S&P 500 index, which represents the wider stock market, is still maintaining its uptrend on the daily time frame. The price is trading above the 50, 100 and 200-day SMA on the daily time frame and this assures traders that the upward trend is very much in play. Although, the S&P 500 closed in negative territory yesterday, it moved away from its lows of the day. This indicates that the near term support is at 3483 and the resistance is at 3602.
Stock Market Rally
The S&P 500 stock index declined yesterday, the index fell by 0.59%. The financial sector led the index lower, and 9 sectors out of 11 closed lower.
The Dow index fell yesterday; the Dow stocks moved the index lower by 0.47%. 20 shares of the Dow fell, and 9 shares closed higher.
The NASDAQ composite, a tech-savvy index, moved lower by 0.41% yesterday.
S&P 500 Leaders and Laggards: {0|Waters}} and Royal Caribbean
Waters (NYSE:WAT) stock contributed the biggest gain, soaring 6.34%. Royal Caribbean (NYSE:RCL) stock was the largest drag; it fell by 5.43%. The S&P 500 stock index is up 9.7% so far this year.
Dow Jones Leaders and Laggards: Disney and Boeing
Walt Disney (NYSE:DIS) stock advance higher by 3.24, and was the biggest mover for the Dow, while Boeing (NYSE:BA) stock declined 2.89%, the biggest drag for Dow Jones Industrial Average index.