Dow Jones Industrial Average: false expectations

Bulls leave the market: Dow Jones will be in the negative area

In brief: Dow Jones Industrial Average will trade on the stock market with mixed dynamics. Dow Jones is not ready for new growth.

Dow Jones can not show positive results in today’s trades. Level of support from the bulls remain weak for the Dow Jones Industrial Average. Meanwhile, there are factors that can support the growth of Dow index. Activity in the U.S. manufacturing sector grew in May, the 10th consecutive month, ISM index of manufacturing activity fell to 59.7 PCT. against 60,4 PBC. In April, the highest level in nearly six years. Nevertheless, the employment component reached 59.8 against 58.5 the previous indicator, supporting the positive outlook for employment levels.

Today we continue the theme of the labor market with a report on layoffs from Challenger. Here, we need to get a sharp reduction in the rate to believe that the 500,000 new places – an adequate forecast. In addition, note the figure outstanding transactions on the secondary housing market – a leading indicator of activity in this sector. Given that the program of preferential shopping coming to an end, it is possible to see a sharp decrease in the rate. Today will be released quite a lot of reports: data on lending, the number of approved applications for mortgages, as well as PMI in the construction sector. Despite the fact that at the moment the pound continues to grow, we do not believe that the consolidation will last long. Unfortunately, to date, reason for optimism is not very much. If the reports are disappointed, it could trigger a rollback currency to a mark of 1.4650 and further to 1.4600.

Ukrainian Globalist
2010-06-02 12:46, Economics.

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