- DowJones trades flat following the opening bell on Thursday.
- US-China trade jitters remain unabated so far.
- Fed’s Powell will testify to Congress later today.
US equities gauged by the DowJones are correcting lower on Thursday after reaching record highs beyond the 27,800 handle on Wednesday.
Dow Jones Index looks to Powell, data
Investors’ sentiment remains depressed in the second half of the week and it is driving US stocks lower against the backdrop of the recent pick up in concerns surrounding the US-China negotiations under the ‘Phase One’ deal.
Also adding to the downbeat mood, Initial Claims rose to multi-year highs at 225K during last week, clearly missing expectations; while Producer Prices surprised to the upside rising 0.4% inter-month in October and 1.1% from a year earlier. Core prices also came in above consensus at 0.3% MoM and 1.6% YoY.
Looking ahead, DowJones is expected to trade on a cautious/weak fashion ahead of the testimony by Fed’s J.Powell to the House Budget Committee.
DowJones faces the next interim resistance at 27,806.40 (all-time high Nov.13) while on the downside the next support emerges at the 10-day SMA at 27,536.30 seconded by July’s high at 27,398.7 and then the September peak at 27,306.7.
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