Global Stock Market Today
The global stock futures have tried to recover some of their losses for this week. However, some of the markets have failed in achieving this as traders continue to worry about the rise in coronavirus cases. The economic recovery is clearly losing its momentum, and this means more weakness for the global stock market rally.
Dow Index And S&P 500 Index: Market Breadth
The Dow Jones market breadth gained some lost ground back yesterday. 60% of the Dow Jones stocks traded above their 200-day moving average yesterday. This is a change of +3% from the day before.
The S&P 500 stock breadth remained unchanged. 51% of the shares traded above their 200-day moving average yesterday.
Dow Jones And S&P 500 Futures Today
The Dow Jones futures are trading higher by 82 points. Investors will be looking at the U.S. Durable Goods Orders data, and the hope is to see some strength. For the last few readings, this data has supported the market sentiment, but the forecast for today’s number is nowhere close to the previous numbers. The data will be released at 01:30 BST, and the forecast for the U.S. Core Durable Goods data is 1.2% against the previous reading of 2.6%.
The Dow Jones futures are retesting the 100-day moving average on the daily time frame. The price broke below this average yesterday. Traders are trying to push the index back above this average today. If the index fails to break above this moving average, it will be quite clear that the path of the least resistance is skewed to the downside. The Dow Jones futures are still trading above the 200-day SMA, which is keeping the hopes alive for the bulls. The expectations are that the current sell-off is only a healthy correction, not a full-blown crisis.
The S&P 500 futures, the wider representation of the U.S. equity market, is also trading below the 100 and 50-day SMA on the daily frame. The S&P 500 futures are on track to record another week of losses, and this will be the fourth week in a row. The chances are that this sell-off is likely to continue for the time being until the price finds a new catalyst.
Stock Market Rally
The S&P 500 stock index gained some strength yesterday and closed higher by a small margin of 0.30%. The consumer staple sector led the index higher, and 9 out of 11 sectors closed higher.
The Dow index also moved off its lows yesterday, and the Dow stocks moved the index higher by 0.20%. 17 stocks of the Dow Jones Index increased in value, and 13 shares of the Dow index moved lower. Goldman Sachs (NYSE:GS) advanced higher by 4.83%, and was the biggest mover for the Dow, while Boeing (NYSE:BA) dropped 3.39%, the biggest drag for the Dow index.
The NASDAQ composite, a tech-savvy index, gained 0.37% yesterday.