Dow Jones Industrial Average (.DJI) Barely Up As Most Indexes Fall
Blue chips in the Dow Jones Industrial Average protected a small gain Tuesday in late morning trade, as the other stock indexes struggled in the red. Meanwhile, the Federal Reserve convened for a two-day meeting.
The Dow Jones added 0.2%, while the small cap Russell 2000 subtracted 0.2%. The Nasdaq composite lost 0.7%, and the large cap S&P 500 fell 0.2%.
Volume shrank on both major exchanges vs. the same time Monday.
Three stocks in the 30 component Dow Jones Industrial Average reacted to earnings and revenue results.
Megacap 3M (MMM) edged above the Street’s consensus estimate on earnings. Revenue was slightly higher than expected. The stock popped 3% in heavy volume.
Drugmaker Pfizer (PFE) rose 2.7% in the first half hour of trade but then eased to a 1.8% gain. Quarterly earnings were a penny a share higher than expected. Company guidance for 2019 was weaker than expected.
Telecom Verizon (VZ) gapped down 2%, even though it topped the consensus estimate on earnings by almost 3%. Revenue was lighter than expected.
Last year, Verizon gained 6% vs. a 6% loss for the S&P 500. Pfizer advanced 21% in 2018, while 3M skidded 19%.
Tough Questions Await Apple
Apple (AAPL), another Dow Jones stock, will report results after the close. Last year, Apple fell 7%. Since the market’s Christmas Eve closing low, Apple has advanced 6%. Analysts are expected to raise some tough questions at Apple’s earnings call.
Apple stock slipped 0.4% as trade approached the midday level.
Small caps rising smartly Tuesday included 3D Systems (DDD), up about 10%, and cosmetics provider Inter Parfums (IPAR), up 6%.
Breakouts also perked up. Breakouts included CyberArk Software (CYBR), industrial equipment maker Graco (GGG), aerospace parts maker TransDigm Group (TDG) and Canadian natural gas distributor Enbridge (ENB).
Overall, the bias in prices is: Sideways.
The projected upper bound is: 25,645.46.
The projected lower bound is: 23,486.20.
The projected closing price is: 24,565.83.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 58.8117. This is not an overbought or oversold reading. The last signal was a sell 4 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 57.26. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 22 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 71. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 18 period(s) ago.
Rex Takasugi – TD Profile
DJ INDU AVERG closed up 51.740 at 24,579.961. Volume was 8% below average (neutral) and Bollinger Bands were 1% narrower than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 24,472.79 24,185.08 24,978.21
Volatility: 14 29 20
Volume: 328,814,432 370,617,888 328,191,712
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
DJ INDU AVERG is currently 1.6% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into .DJI (mildly bullish). Our trend forecasting oscillators are currently bullish on .DJI and have had this outlook for the last 11 periods.