Monday, October 4, 2010

Dow Jones Industrial Average Review, 04/10/2010

Dow Jones loses 78 points ahead of 3Q results season at 14751, following ratings downgrade on Microsoft, Alcoa, JC Penny and Macy ahead of the corporate earnings season and key employment data due later in the week. Sentiment was also dampened by the disappointing economic data of a 0.5% drop in August factory orders (consensus: -0.4%) and worries about euro zone debt, keeping investors away from riskier assets and sparked profit-taking after the recent rally.

Troubling economic news from Ireland, Portugal and Greece renewed concerns about the euro zone debts, hurting the euro currency and sending the safe-haven U.S. dollar higher.

For Wall Street, the strength of September’s momentum will be tested this week by several economic data, including the much attention paid non-farm payrolls report, as well as the start of 3Q earnings season. We expect more volatility on Dow Jones, consolidating within a wide range bound 10500-11000 levels in the short term.

Daily Dow Jones indicates the impending dead cross in MACD, signaling more downside consolidation.
Source: MarketWatch

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