The Stock market recovered its losses yesterday and we experienced a sharp bounce. However, traders have lost that confidence today and stock futures are trading lower once again. GameStop and AMC shares gained in aftermarket yesterday after Robinhood Markets Inc allowed traders once again to trade these shares.
Asian Markets
The Asian stock market traded mostly lower on the final trading day of the week. The Shanghai index declined 0.79%, the HSI index decreased by 0.60%, while the ASX index fell 0.64%. The Nikkei index dropped by 1.17%.
Dow Jones and S&P 500: Market Breadth
The Dow Jones’ market breadth gained momentum yesterday. 87% of the Dow Jones stocks traded above their 200-day moving average.
The S&P 500 stock breadth also strengthened yesterday. 87% of the shares traded above their 200-day moving average.
Dow Jones Futures Today
The Dow Jones futures are trading lower today. In terms of economic data, investors will be looking at the Personal Income and Personal Spending numbers closely, which are due later in the day. The forecast for Personal Income is 0.1%, for Personal Spending, it is -0.4%.
The Dow Jones futures are trading lower today. The Dow has pierced the lower line of the Bollinger band which shows that there is high volatility. The price challenged the 50-day SMA earlier in the day but it failed to break above this average.
This confirms that bulls are struggling to push the markets higher. However, the Dow is still trading above the 100 and 200-day SMA which confirms that the bullish trend is not over yet.
The near term support is at 29,434, while the resistance is at 30,739.
Stock Market Rally
The S&P 500 stock index closed higher yesterday; the index advanced by 0.98%. The financial sector led the index higher and all 11 sectors closed higher.
The Dow index also moved higher yesterday; the Dow stocks moved the index higher by 0.99%. 21 shares advance,d while 9 shares closed lower.
The NASDAQ composite, a tech-savvy index, closed higher by 0.50% yesterday.
S&P 500 Leaders and Laggards: L Brands and Lumen
L Brands stock contributed the biggest gain, soaring 10.4%. Lumen Technologies stock was the largest drag; it fell by 22.5%. The S&P 500 stock index is up 0.8% so far this year.
Dow Jones Leaders and Laggards: Disney and Apple
Disney stock provided the biggest help for the Dow Jones; it advanced by 5.43%, while Apple stock was the largest decliner, it fell by 3.5%.