- Dow Jones fell 1.6 % to 434500 on Friday.
- PMIS came in the United States in mixed consumer morale, and accelerating inflation expectations.
- UNITEDHELTH is said to be investigated by the US Department of Justice.
Dow Jones Industrial Malce (DJIA) declining more than 700 points on Friday, which led to a decrease of about one and a half percent and touched the 43500 level for the first time in more than a month. American economic data has come widely in the decline, but the main losses accumulate on one target stock, leading to a significant decrease in Dow Jones.
Possible stagnation fears on the table returned after a sharp shift in the numbers of the American Procurement Manager Index (PMI). The PMI Services component decreased to 49.7, which is the lowest printing of it in exactly two years. With the PMI services services drop to less than 50.0 marks and return to the shrinkage area, the slow height in the component of the manufacturing manufacturing components helped maintain the balance of things, but not much. The index of participation in manufacturing rose to 51.6 out of 51.2, reaching the highest level in seven months.
The Consumer Passion Index at the University of Michigan (UOM) also decreased in January, as it reached its lowest level in 15 months at 64.7, where fears of inflation on consumer morale were weight. Consumer inflation forecast for 12 months in UOM shows that a sample of consumers from the United States is now expecting inflation to be 4.3 % during the next year, and expectations for 5 years have also accelerated to 3.5 %. With high consumer enlargement expectations, it will be difficult for the Federal Reserve (Fed) to provide price cuts.
Dow Jones News
Nearly half of the Dow Jones Equity panel in Green on Friday, but the sharp declines in UNITEDHELHELTH (UN) blows the title of Dow. UNITEDHELTH decreased by 9 % a day, as it decreased to $ 458 per share after it was revealed that the health care giant is scheduled to be investigated by the US Department of Justice.
Dow Jones price expectations
Through one batch of solid landing, Dow Jones is now trading in the dead area between the 50 -day and 200 days moving averages (EMA) at 43,945 and 41,970, respectively. Prices have turned into a sharp drop, but there is still a large range of a sharp decline to the high side.
The solid ceiling was priced near the 45,00 handle, and the offers of the offers will start accumulating in the scheme with a continued decrease in prices about 43,000.
Dow Jones Daily Plan
Dow Jones, common questions
Dow Jones Industrial Meptal, one of the oldest securities market indicators in the world, is assembled from the 30 most traded stocks in the United States. The index is likely to prices instead of the capitalization. It is calculated by collecting component stock prices and dividing them into a worker, currently 0.152. The index was established by Charles Dow, who also founded the Wall Street Journal. In subsequent years, she was criticized for not being represented widely enough because it only follows 30 groups, unlike the broader indicators such as the S&P 500.
Many different factors pay the DJIA. The total performance of the component companies that have been revealed in the company’s quarterly profit reports is the main performance. Overage economy data in the United States also contribute as it affects investor morale. The level of interest rates, set by the Federal Reserve (Fed), also affects DJIA because it affects the cost of credit, on which many companies depend dramatically. Therefore, inflation can be a major driver as well as other standards that affect the decisions of the Federal Reserve.
Dow is a way to determine the basic direction of the Charles Dow. The main step is to compare the direction of the industrial average (DJIA) and the average transmission of Dow Jones (DJTA) and only follow -up trends as both move in the same direction. Size is confirmation criteria. Theory uses elements of peak and pelvis. Dow theory assumes three stages of direction: accumulation, when smart money begins to buy or sell; General participation, when the audience joins a wider scale in; And distribution, when the smart money comes out.
There are a number of ways to exchange gypsum. One of them is the use of investment funds circulating in traded investment funds that allow investors to exchange DJIA as one security, instead of having to buy shares in all thirty companies. A major example is SPDR Dow Jones Industrial ETF (DIA). Djia Futures contracts enable traders to predict the future value of the indicator and options that provide the right, but not commitment, to buy or sell the index at a pre -determined price in the future. Investment funds enable investors to buy a share of a variety of DJIA shares and thus provide exposure to the general index.
