Wall Street benchmarks reaching for blue skies; DJIA stochastics are overbought

  •  The Dow Jones Industrial Average (DJIA), +0.26% added 68 points, or 0.3%, at 26,452.45.
  • The S&P 500 index eeked out a very modest 0.1% to 2,907.
  • The Nasdaq Composite Index added 24.21 points, or 0.3%, to 8,000.23.

We saw slight gains in benchmarks on Wall Street with an advance in the financial sector and despite yesterday's less than impressive results from top financial institutions. However, gains were capped by weaker health-care providers. As a result, the S&P 500 index eeked out a very modest 0.1% to 2,907 as the Health Care Select Sector declined by 2.1% vs the financial sectors ETF climbed 1.4%, to lead the broad-market.  The Dow Jones Industrial Average (DJIA), +0.26% added 68 points, or 0.3%, at 26,452.45, somewhat anchored by UnitedHealth Group Inc shares ending down -4.1%. 

US data

"Headline industrial production missed expectations in March, falling 0.1% (+0.2% expected). Overall industrial production is now down 0.4% annualised for the quarter, the weakest since late-2017. The data suggest that US manufacturing activity has yet to find a bottom, despite some more positive global momentum recently," analysts at ANZ explained.

Earnings post-close


  • IBM Q1 19 Earnings Results:

Op. EPS: $2.25 (Estimate $2.22) / Revenue: $18.2B (Estimate $18.4B)


  • CSX Q1 19 Earnings Results:

EPS: $1.02 (Estimate $0.91) / Revenue: $3.01B (Estimate $3.02B)


  • Netflix Q1 19 Earnings Results:

EPS: $0.76 (Estimate $0.57) / Revenue: $4.52B (Estimate $4.50B)

DJIA levels

The technical picture looks bullish on the daily charts while the price inches higher above the daily 20 and 50 EMA with bulls in pursuit of the October highs. However, stochastics are in overbought territory which should be a warning to bulls. A correction will target the 20-D SMA and 26000 ahead of the 25700s. The 200-DMA is critical at that juncture which meets the 23.6% Fibo retracement of the late Dec rally guarding a break all the way down to 24800 gap area and S2 ahead of the 24500s and then 50% of the upside run made at the end of Dec at 24150.



Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD trims early gains, dangerously close to 1.1200

The positive tone of the pair fades in the American afternoon as demand for the dollar resumes, despite softer-than-expected US data. All eyes on the Fed this week.


GBP/USD extends decline, pierces 1.2550

Despite moving in slow-motion, GBP/USD decline is continuous with the pair trading at levels last seen in January, amid political uncertainty weighing on Sterling.


USD/JPY remains directionless above mid-108s on Monday

The USD/JPY pair is struggling to make a decisive move in either direction on Monday as the slightly upbeat market sentiment doesn't allow the safe-haven JPY to gather strength.


Gold remains on track to close with small losses below $1340

The XAU/USD pair, which closed higher on the weekly chart for the fourth straight time last week, is fluctuating in a relatively tight range on Monday amid a lack of significant fundamental drivers that had a lasting impact on the greenback's market valuation or the risk perception.

Gold News

Gold: Signs of bullish exhaustion ahead of the Fed

Gold's rally seems to have run its course with signs of bullish exhaustion emerging on technical charts ahead of Wednesday's FOMC (Federal Open Market Committee) rate decision.

Read more