Dow Jones Industrial Average middles post-US CPI inflation
-
Dow
Jones
stuck
to
Thursday’s
opening
range
after
CPI
inflation
cools. -
Rate
cut
expectations
pinned
to
the
ceiling
as
price
pressures
ease. -
Market-wide
pivot
out
of
tech
stocks
limits
gains
from
rate
cut
hopes.
The
Dow
Jones
Industrial
Average
(DJIA)
mostly
stuck
to
familiar
territory
on
Thursday,
clipping
into
the
high
end
after
US
Consumer
Price
Index
(CPI)
inflation
came
in
below
expectations
and
sparking
an
uptick
in
broad-market
rate
cut
expectations
in
2024.
Despite
easing
inflation,
a
pivot
out
of
tech
stocks
kept
equity
indexes
pinned
close
to
flat
during
Thursday’s
American
market
session.
June’s
US
CPI
inflation
broadly
fell
below
forecasts,
with
annualized
headline
CPI
inflation
easing
to
3.0%
YoY
from
the
previous
3.3%
and
falling
even
lower
than
the
forecast
3.1%.
CPI
inflation
actually
contracted
-0.1%
MoM
in
June,
falling
back
from
the
previous
month’s
flat
0.0%
and
below
the
forecast
0.1%.
US
Initial
Jobless
Claims
fell
to
222K
for
the
week
ended
July
5,
down
from
the
previous
week’s
revised
239K
and
improving
from
the
forecast
236K.
Thursday’s
Initial
Jobless
Claims
figure
helped
to
push
the
four-week
average
down
to
233.5K
from
the
previous
238.75K.
With
US
CPI
inflation
cooling
at
an
accelerated
pace,
market
expectations
for
a
rate
hike
from
the
Federal
Reserve
(Fed)
are
pricing
in
the
possibility
of
three
quarter-point
rate
cuts
in
2024.
According
to
the
CME’s
FedWatch
Tool,
rate
market
bets
of
a
September
rate
cut
have
soared
to
95%.
Dow
Jones
news
The
Dow
Jones
looked
for
gains
on
Thursday,
but
topside
momentum
remained
crimped
as
tech
stocks
declined.
While
the
Dow
Jones
was
up
around
a
fifth
of
a
percent
on
the
day
overall,
concentrated
losses
in
familiar
technology
names
kept
a
lid
on
gains.
3M
Co.
(MMM)
and
Home
Depot
Inc.
(HD)
rose
around
2.5%
on
Thursday,
rising
to
$104.20
and
$352.60
per
share,
respectively.
Intel
Corp.
saw
a
-4.24%
decline,
falling
to
$33.38
per
share
while
Amazon.com
Inc
(AMZN)
also
backslid
-3.0%,
declining
to
$193.76
per
share.
Dow
Jones
technical
outlook
Dow
Jones
found
slim
gains
on
Thursday,
but
momentum
remains
stilted
as
the
index
tests
the
water
of
a
supply
zone
priced
in
near
the
40,000.00
major
price
handle.
The
Dow
Jones
has
been
slowly
battling
back
into
reach
of
all-time
high
bids
sets
just
north
of
40,000.00
back
in
May,
recovering
nearly
5%
from
the
post-peak
swing
low
towards
38,000.00.
Dow
Jones
five
minute
chart
Dow
Jones
daily
chart
Dow
Jones
FAQs
The
Dow
Jones
Industrial
Average,
one
of
the
oldest
stock
market
indices
in
the
world,
is
compiled
of
the
30
most
traded
stocks
in
the
US.
The
index
is
price-weighted
rather
than
weighted
by
capitalization.
It
is
calculated
by
summing
the
prices
of
the
constituent
stocks
and
dividing
them
by
a
factor,
currently
0.152.
The
index
was
founded
by
Charles
Dow,
who
also
founded
the
Wall
Street
Journal.
In
later
years
it
has
been
criticized
for
not
being
broadly
representative
enough
because
it
only
tracks
30
conglomerates,
unlike
broader
indices
such
as
the
S&P
500.
Many
different
factors
drive
the
Dow
Jones
Industrial
Average
(DJIA).
The
aggregate
performance
of
the
component
companies
revealed
in
quarterly
company
earnings
reports
is
the
main
one.
US
and
global
macroeconomic
data
also
contributes
as
it
impacts
on
investor
sentiment.
The
level
of
interest
rates,
set
by
the
Federal
Reserve
(Fed),
also
influences
the
DJIA
as
it
affects
the
cost
of
credit,
on
which
many
corporations
are
heavily
reliant.
Therefore,
inflation
can
be
a
major
driver
as
well
as
other
metrics
which
impact
the
Fed
decisions.
Dow
Theory
is
a
method
for
identifying
the
primary
trend
of
the
stock
market
developed
by
Charles
Dow.
A
key
step
is
to
compare
the
direction
of
the
Dow
Jones
Industrial
Average
(DJIA)
and
the
Dow
Jones
Transportation
Average
(DJTA)
and
only
follow
trends
where
both
are
moving
in
the
same
direction.
Volume
is
a
confirmatory
criteria.
The
theory
uses
elements
of
peak
and
trough
analysis.
Dow’s
theory
posits
three
trend
phases:
accumulation,
when
smart
money
starts
buying
or
selling;
public
participation,
when
the
wider
public
joins
in;
and
distribution,
when
the
smart
money
exits.
There
are
a
number
of
ways
to
trade
the
DJIA.
One
is
to
use
ETFs
which
allow
investors
to
trade
the
DJIA
as
a
single
security,
rather
than
having
to
buy
shares
in
all
30
constituent
companies.
A
leading
example
is
the
SPDR
Dow
Jones
Industrial
Average
ETF
(DIA).
DJIA
futures
contracts
enable
traders
to
speculate
on
the
future
value
of
the
index
and
Options
provide
the
right,
but
not
the
obligation,
to
buy
or
sell
the
index
at
a
predetermined
price
in
the
future.
Mutual
funds
enable
investors
to
buy
a
share
of
a
diversified
portfolio
of
DJIA
stocks
thus
providing
exposure
to
the
overall
index.
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