Friday, July 1

Dow Jones at Christmas: volatility, Fed digestion and GDP look

DOW JONES Ind Average starts up this week after losing 1.7% overall in the five preceding sessions Mainly driven by the downward session last Friday. It was the least punished indicator in the week after losses of 3% for the Nasdaq and 1.9% for the S & P500.

532 points of falls after the FED which has already marked its roadmap, for the withdrawal of stimuli, with the path that the market was already discounting and after planning the rate hikes in 2022: three in particular throughout the year once the purchase of bonds is finished. The economy is more robust and with inflation soaring, the movement of the Federal Reserve is reflected in the market.

Experts consider that volatility will preside over the prices of a Dow Jones this week, that, after posting losses in five of the preceding six weeks, and despite the fact that it will only open its doors until Thursday or maybe because of that, it will have to digest the stock market effects of the new monetary policy.

And with a lot of data to process, like the latest revision of growth in the third quarter, with a very slight first data revised upwards to 2.1%, well below the growth of the first part of the year. Even so, and even though the Federal Reserve has revised down the increase in GDP in 2021 to 5.5%, the economic strength is still present, despite the fact that there is no full recovery in the US labor market.

In its stock chart we see that the Dow Jones has lost 1.7% in the penultimate week of the year and barely shows movements of 0.66% downward in the previous month. Advances in the quarter a discreet 2.26% while so far this year it has risen 15.5% and since December of last year the revaluation reaches 17.2%.

Dow Jones annual stock price

Despite the sharp fall last Friday in bank values ​​and WalMart and Apple and Alphabet weekly, the truth is that Goldman Sacks, Home Depot, Microsoft and United Health are the values ​​that have risen the most between 60 and 46% so far this year, compared to the falls that only six Dow Jones values ​​present at the moment.

But if we talk about cuts that are already somewhat more significant, we find three values: Verizon cutting above 8%, Boeing losing 13.76% so far this year, given the fall in tourism and the lower sale of aircraft to airlines that reduce traffic and capacity, and therefore the purchase of aircraft, and also Wall Disney which cuts 14.29%, although there are many who begin to see the end of the tunnel with courage, Goldman Sachs case. The omicron variant restrictions continue to impact the entertainment company as its streaming business begins to slow subscriptions.

In fact, the premium indicators of Investment Strategies slightly reduce their appreciation of the indicator, although they remain in a bullish mode, it falls by half a point compared to a week ago. With a total score of 7.5 compared to 10 possible for Dow Jones. In negative we find the medium-term trend, which is downward and the volatility of the value in the medium term, which is increasing.

The rest, long-term uptrend, positive total moment, both fast and slow, volume of business that, in its two aspects, in the medium and long term, also moves increasing for the indicator and volatility, its long-term range is decreasing for Dow Jones.

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