The Dow Jones moved to a new record high but remains flat overall, with equities seeing an upward tilt but limited market momentum overall. US S&P PMI figures were mixed on Monday, but the focus was on Fedspeak dominating the market. The manufacturing PMI fell to its lowest level since July 2023, while the services PMI beat expectations.
Federal Reserve Bank of Chicago President Austan Goolsbee warned that further rate cuts may be necessary over the next year to address potential labor market issues. The data is derived from surveys of senior executives in the manufacturing sector and can anticipate trends in GDP, industrial production, employment, and inflation. A reading above 50 indicates expansion, while below 50 signals decline.
In Dow Jones news, Intel saw a rise on reports of a $5 billion investment from Apollo Global Management, signaling confidence in the chipmaker’s turnaround. The DJIA continues to hover near the 42,000 price level and may see a bearish pullback near the Exponential Moving Average. The index is price-weighted and tracks 30 of the most traded stocks in the US.
Various factors drive the DJIA, including company earnings reports, macroeconomic data, interest rates set by the Fed, and inflation. Dow Theory is used to identify market trends based on the movements of the DJIA and DJTA. Trading the DJIA can be done through ETFs, futures contracts, options, and mutual funds, providing exposure to the index and individual stocks. Overall, the market remains cautious despite record highs in the Dow Jones.
