Dow Jones Industrial Average climbs nearly 700 points on Thursday recovery
|- Dow Jones climbed around 700 points on Thursday.
- US equities are attempting a recovery for the third time.
- Risk appetite is slowly rebuilding as investors pivot back to rate cut watch.
The Dow Jones Industrial Average (DJIA) recovered roughly 700 points during the Thursday market session as markets take another run at pushing equities back into a bullish trajectory after a near-term plunge fueled by fresh fears of a US recession. Market flows are beginning to return to normal, or some version of it, and indexes are taking another crack at recovering lost ground. However, the Dow Jones still remains on the wrong end of price action and scrambling to reclaim the 40,000.00 handle.
US Initial Jobless Claims for the week ended August 2 printed at 233K, less than the forecast 240K and easing back from the previous week’s 250K. Cooling initial unemployment figures are helping investors keep a lid on recent downturn fears after last week’s US labor data dump sparked a firm risk-off bid.
US data watchers will be on the lookout for a fresh round of producer and consumer-level inflation figures due next week. US Producer Price Index (PPI) inflation is slated for next Tuesday, with Consumer Price Index (CPI) inflation on the books for next Wednesday.
Dow Jones news
The Dow Jones is in a broad recovery mode, with nearly all of the index’s listed securities in the green on Thursday. Walt Disney Co. (DIS) is still down -1.13% and testing below $85.00 per share after reporting weaker-than-expected profits from theme park operations despite an upswing in revenue streaming services.
Intel Corp. (INTC) is in recovery mode on Thursday, rising over 4% and approaching $20.00 per share after hitting a fresh 52-week low early in the day. The tech giant is seeing a bounce in its share price after investors were spooked by a slight miss in Q2 earnings and a downside revision to Intel’s forward guidance for Q3.
Dow Jones price forecast
The Dow Jones has reclaimed the 39,000.00 handle in another intraday bid to spark fresh topside momentum, and bidders will be hoping that the third time’s the charm after repeated failures to make meaningful headway this week. The index has avoided falling back below the 38,500.00 level after its latest three-day plunge that dragged the equity board down -6.58% top-to-bottom, and bulls remain determined to keep the Dow Jones trading above the 200-day Exponential Moving Average (EMA) at 38,011.45.
Dow Jones daily chart
Economic Indicator
Continuing Jobless Claims
The Continuing Jobless Claims released by the US Department of Labor measure the number of individuals who are unemployed and are currently receiving unemployment benefits. It is representative of the strength of the labor market. A rise in this indicator has negative implications for consumer spending which discourages economic growth. Generally speaking, a high reading is seen as bearish for the US Dollar (USD), while a low reading is seen as bullish.
Read more.Last release: Thu Aug 08, 2024 12:30
Frequency: Weekly
Actual: 1.875M
Consensus: 1.87M
Previous: 1.877M
Source: US Department of Labor
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