The Dow Jones Soars Over 1% in a Resilient Market
- Investors Show Renewed Confidence
- Market Reacts Positively to Economic Indicators
The Dow Jones Industrial Average (DJIA) surged more than 1% on Thursday, gaining around 550 points as investors reentered the market with enthusiasm. Despite a slight contraction in the Philadelphia Fed Manufacturing Index, the market remained resilient, buoyed by softer jobless claims and an uptick in Existing Home Sales Change. Notably, the Industrial and Financial sectors led the day’s rally.
Key Economic Data
On Thursday, US Initial Jobless Claims came in lower than expected, with 213,000 new claims for the week ended November 15, below the anticipated 220,000 and down from the previous week’s 219,000. Additionally, Existing Home Sales Change saw a positive uptick in October, climbing 3.4% following a revised -1.3% decline in the previous month.
However, the Philadelphia Fed’s Manufacturing Survey for November painted a less optimistic picture, dropping to -5.5 from the previous month’s 10.3 and falling below the median forecast of 8.0. Despite this, the market remained undeterred, focusing on the overall positive economic indicators and pushing towards record highs.
Market Performance and Outlook
Thursday saw a broad increase in risk appetite across sectors, propelling the Dow Jones into bullish territory. Nearly all listed securities on the index saw gains, with Salesforce (CRM) standing out with a nearly 5% rise, surpassing $341 per share ahead of its upcoming earnings report. Meanwhile, Nvidia (NVDA) experienced volatile trading, hitting record highs before retracing amidst mixed investor sentiment on the company’s recent quarterly performance.
Chart Analysis and Technical Outlook
The Dow Jones is once again testing the 44,000 level, rallying 600 points from intraday lows near 43,200. A consistent pattern of higher lows since November 2023 has fueled a strong bull run, with prices consistently above the 200-day Exponential Moving Average (EMA). However, breaking above 44,400 remains a key challenge for further record highs, with the 50-day EMA providing solid support at 42,600.
Understanding Economic Indicators
The Initial Jobless Claims, released by the US Department of Labor, measures the number of individuals filing first-time claims for state unemployment insurance. A higher-than-expected figure indicates weakness in the labor market and a negative impact on the US economy. Conversely, a decreasing number signals strength in the labor market and is positive for the US Dollar (USD).
Last Release: Thu Nov 21, 2024 13:30
Frequency: Weekly
Actual: 213K
Consensus: 220K
Previous: 217K
Source: US Department of Labor