Dow Jones Industrial Average cycles familiar territory on Tuesday

The Dow Jones Industrial Average cycled familiar territory on Tuesday.
The equity index is holding near 41,000.00 as investors take a breather.
Equities poised for further upside as investors brace for Jackson Hole.

Joshua Gibson FXStreet

The Dow Jones Industrial Average (DJIA) churned on Tuesday, eking out a fresh two-week high near the 41,000.00 handle but overall holding close to the day’s opening bids as markets shuffle in place with key activity data and major central bank appearances in the barrel this week.

US Purchasing Manager Index (PMI) business activity survey results are slated for release on Thursday, as well as the kickoff of the annual Jackson Hole Symposium which is set to run through the weekend. Wednesday will deliver the Federal Reserve’s (Fed) latest Meeting Minutes, but market forces will broadly be looking ahead to Thursday’s outings for reasons to move.

US S&P Global Manufacturing PMI activity expectations are forecast to hold steady at 49.6 in August, while the Services PMI component is expected to tick down a full point to 54.0 from 55.0. The kickoff of the Jackson Hole Symposium is expected to draw plenty of investor attention on Thursday, but Friday’s appearance from Fed Chairman Jerome Powell can be expected to set the overall tone of market sentiment heading into next week.

Dow Jones news

The Dow Jones is mostly in the green on Tuesday, with roughly one third of the board testing into the low end for the day. Losses were led by Boeing Co. (BA) which fell another 4.2% to $172.09 per share, followed by Intel Corp. (INTC) which shed 2.22% and declined to $21.05 per share. On the high side, Walmart Inc. (WMT) rose roughly 1% to $74.44 per share, closely followed by Procter & Gamble Co. (PG) which climbed nearly the same and tested $74.50 per share.

Dow Jones price forecast

With the Dow Jones back to testing the waters near the 41,000.00 major price handle, bulls will be looking for a fresh boost in momentum to drag the DJIA back into record highs set in June near 41,400.00. Short pressure could build in the charts with the index taking a breather after rallying for five straight trading days, but the index remains well-bid north of the 50-day Exponential Moving Average (EMA) near 39,674.00.

Dow Jones daily chart

Economic Indicator

Jackson Hole Symposium

The Jackson Hole Economic Policy Symposium is an annual symposium sponsored by the Federal Reserve Bank of Kansas City since 1978, and held in Jackson Hole, Wyoming, since 1981. It is a forum for central bankers, policy experts and academics to come together to focus on a topic.

EUR/USD turns negative near 1.1850

EUR/USD has given up its earlier intraday gains on Thursday and is now struggling to hold above the 1.1850 area. The US Dollar is finding renewed support from a pick-up in risk aversion, while fresh market chatter suggesting Russia could be considering a return to the US Dollar system is also lending the Greenback an extra boost.

GBP/USD change course, nears 1.3600

GBP/USD gives away its daily gains and recedes toward the low-1.3600s on Thursday. Indeed, Cable now struggles to regain some upside traction on the back of the sudden bout of buying interest in the Greenback. In the meantime, investors continue to assess a string of underwhelming UK data releases released earlier in the day.