Dow Jones Reactivates: What Will the Employment Data Bring?
The Dow Jones index is back in the spotlight on Friday, marking the return of Wall Street after Thursday's pause for the Day of Mourning in honor of former President Jimmy Carter. The day is loaded with key data, with the U.S. jobs report being the main catalyst for the market.
Positive Opening: Moderate Recovery
The Dow Jones is up 0.25% in early trading, driven by cautious investor optimism. This advance reflects an initial favorable response to the market reopening, although the ultimate direction will depend on economic data released during the day.
Employment Report: A Decisive Factor
The main focus of the day is on the December employment report, which is expected to show the creation of 154,000 nonfarm payrolls and a steady unemployment rate at 4.2%.
• Impact on the Dow Jones:
o Better-than-expected data: If the numbers beat expectations, they could stoke fears of further rate hikes, pressuring the index lower. They could boost cyclical sectors such as financials and industrials, strengthening the index.
o Worse-than-expected data: A lower-than-expected result could reinforce the idea of a less aggressive Fed, benefiting rate-sensitive sectors such as technology and consumer discretionary.
o Disappointing data: Could generate downward pressure, especially in stocks sensitive to economic growth.
Dow Jones Technical Outlook
- Key resistance: 42,605.55 points, a level that could be reached if the data surprises to the upside.
- Immediate Support: 42,361.31 points being the second support zone at lows of 42,290.51 points, which would act as a floor in case of a weak employment report.
- Check Point (POC) / RSI: Currently around 42,506 points and the RSI at 54.16% indicating balance around the check point.
- Average crossover: Currently the long term average crossover made a bearish turn crossing the 50 average below the 100 average consolidating the fall to the low of 42,290.51 (the current strong support zone).
- Range: 42,605.55 and 42,290.51
Conclusion
The Dow Jones faces a crucial day, with the jobs report as the main driver of movement. Investors will be watching closely how the jobs data influences the economic outlook and monetary policy, which will determine the direction of the index in the near term.
Ion Jauregui - Analyst ActivTrades
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
Positive Opening: Moderate Recovery
The Dow Jones is up 0.25% in early trading, driven by cautious investor optimism. This advance reflects an initial favorable response to the market reopening, although the ultimate direction will depend on economic data released during the day.
Employment Report: A Decisive Factor
The main focus of the day is on the December employment report, which is expected to show the creation of 154,000 nonfarm payrolls and a steady unemployment rate at 4.2%.
• Impact on the Dow Jones:
o Better-than-expected data: If the numbers beat expectations, they could stoke fears of further rate hikes, pressuring the index lower. They could boost cyclical sectors such as financials and industrials, strengthening the index.
o Worse-than-expected data: A lower-than-expected result could reinforce the idea of a less aggressive Fed, benefiting rate-sensitive sectors such as technology and consumer discretionary.
o Disappointing data: Could generate downward pressure, especially in stocks sensitive to economic growth.
Dow Jones Technical Outlook
- Key resistance: 42,605.55 points, a level that could be reached if the data surprises to the upside.
- Immediate Support: 42,361.31 points being the second support zone at lows of 42,290.51 points, which would act as a floor in case of a weak employment report.
- Check Point (POC) / RSI: Currently around 42,506 points and the RSI at 54.16% indicating balance around the check point.
- Average crossover: Currently the long term average crossover made a bearish turn crossing the 50 average below the 100 average consolidating the fall to the low of 42,290.51 (the current strong support zone).
- Range: 42,605.55 and 42,290.51
Conclusion
The Dow Jones faces a crucial day, with the jobs report as the main driver of movement. Investors will be watching closely how the jobs data influences the economic outlook and monetary policy, which will determine the direction of the index in the near term.
Ion Jauregui - Analyst ActivTrades
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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