Stock Indices: Dow Jones falls a second day on dampened global growth prospects

On Tuesday Dow Jones Industrial Average traded within the range of 17,579.77-17,718.03. The benchmark closed at 17,604.15, retreating 0.75% (132.85 points) on a daily basis. It has been the 19th drop in the past 45 trading days, a second consecutive one and also the sharpest one since February 23rd. The blue-chip gauge has lost 0.46% of its value so far in April, following two consecutive months of gains.

Equities lost ground sharply on Tuesday, as concerns over dampening long-term global growth mounted. Yesterday Monetary Fund managing director, Christine Lagarde, noted that economic outlook has deteriorated during the past six months, due to low inflation rates, weak opportunities for growth, a lack of new jobs and high debt levels on a global scale.

Among the companies included in the benchmark, 27 posted a daily decline on Tuesday and 3 posted a daily gain. Shares of Cisco Systems Inc (CSCO) recorded the worst performance within the Dow on April 5th, going down 1.99% to close at $27.58. It has been the 9th drop in the past 21 trading days, a second consecutive one and also the steepest one since February 5th. April 5th low of $27.46 per share has been the lowest price level since March 15th, when a low of $27.45 a share was registered. Cisco shares have fallen 3.13% so far during the current month, following two straight months of decline.

UnitedHealth Group Incorporated (UNH) was the second worst performer within the DJIA on April 5th, depreciating 1.89% to close at $127.04 per share. It has been the 10th drop in the past 21 trading days, a second straight one and also the sharpest one since February 5th. April 5th low of $126.91 per share has been the lowest price level since March 22nd, when a low of $126.02 was recorded. The daily trading volume (4.44M) has been the highest since March 23rd. UnitedHealth Group has slumped 1.44% so far in April, following two consecutive months of gains.

At the same time, the shares of Pfizer Inc (PFE) registered the most notable daily increase within the DJIA for a second consecutive session on April 5th, going up 2.08%, to close at $31.36, while marking their 12th gain in the past 21 trading days and also a third consecutive one. April 5th high of $31.75 per share has been the highest price level since January 7th, when a high of $31.81 a share was registered. Pfizer has risen 5.80% so far during the current month, following five consecutive months of decline. Several media reported earlier Wednesday that the company may walk away from a $160 billion merger with Allergan Plc, after on April 4th the US Treasury announced a new set of measures in order to restrain tax inversion practices.

Boeing Company (BA) was the second best performer within the Dow on Tuesday, appreciating 0.55%, to close at $127.03. It has been the 12th gain in the past 21 trading days. April 5th high of $128.56 per share has been the highest price level since March 30th, when a high of $132.73 was recorded. Boeing shares have added 0.07% to their value so far in April, following a 7.41% surge in the preceding month.

Daily and Weekly Pivot Levels

By employing the Camarilla calculation method, the Wednesday pivot levels for DJIA are presented as follows:

R1 – 17,616.82
R2 – 17,629.50
R3 (range resistance) – 17,642.17
R4 (range breakout) – 17,680.19

S1 – 17,591.48
S2 – 17,578.80
S3 (range support) – 17,566.13
S4 (range breakout) – 17,528.11

By using the traditional method of calculation, the weekly pivot levels for DJIA are presented as follows:

Central Pivot Point – 17,679.79
R1 – 17,924.61
R2 – 18,056.00
R3 – 18,300.82

S1 – 17,548.40
S2 – 17,303.58
S3 – 17,172.19