CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

DJIA Record Highs in Sight After BetterThanExpected Q2 Earnings Season

Article By: ,  Head of Market Research
September 10, 2019 10:26 AM

You’d never guess it amidst the latest headlines that the The We Company (WeWork) may be looking to postpone its highly-anticipated IPO or that job creation in the US is slowing, but major US indices are actually within 2% of their all-time highs.

While there are concerns about a potential slowdown in global growth heading into the end of the year, US corporations continue to thrive. According to the earnings mavens at FactSet, 75% of S&P 500 companies beat their Q2 earnings estimates and 57% of companies have reported better-than-anticipated revenues. While corporate earnings overall declined by -0.7% for the quarter, the decline was smaller than expected as the tailwind from 2018’s big tax cut faded.

After pulling back from record highs in late July, the Dow Jones Industrial Average formed a well-defined, 1,000-point sideways range between 25,400 and 26,400 throughout August. The index has now broken out above that area, completing a healthy correction within this year’s uptrend, and appears poised to retest the all-time high near 27,400. Meanwhile, the RSI indicator has formed a clear near-term uptrend of its own after briefly touching “oversold” territory below 30 last month, signaling that the momentum increasingly favors the bulls:

Source: TradingView, FOREX.com

Moving forward, the Dow’s near-term bias remains to the topside as long as the index holds above the previous breakout level at 26,400. Needless to say, a confirmed breakout above 27,400 would be a sign of strong buying pressure and could open the door for a move above 28,000 in time. Only a break back below 26,400 would shift the near-term bullish bias back to neutral from a technical perspective.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024