Stock Indices: Dow Jones rebounds on oil surge, Pfizer marks the best performance for a third straight day

On Wednesday Dow Jones Industrial Average traded within the range of 17,542.98-17,723.55. The benchmark closed at 17,717.14, rising 0.64% (112.99 points) on a daily basis. It has been the 27th gain in the past 46 trading days and also the sharpest one since March 18th. The blue-chip gauge has added 0.18% to its value so far in April, following two consecutive months of gains. In March it went up 7.08%.

Equities rebounded on Wednesday, as crude oil futures rose for a second straight trading day. April 6th marked the 40th gain in oil prices out of the past 78 trading days. Oil futures for May delivery went up as high as $38.00 per barrel on Wednesday and closed at $37.96, surging 3.46% on the day. As of 9:03 GMT today the commodity was edging up 0.21% to trade at $37.83 per barrel, after going up as high as $38.29 earlier. Since mid-February oil futures have demonstrated a strong positive correlation with US equities.

Among the companies included in the benchmark, 6 posted a daily decline on Wednesday and 24 posted a daily gain. Shares of General Electric Company (GE) recorded the worst performance within the Dow on April 6th, going down 0.26% to close at $30.90. It has been the 13th drop in the past 22 trading days and also a third consecutive one. April 6th low of $30.64 per share has been the lowest price level since March 17th, when a low of $30.18 a share was registered. General Electric shares have fallen 2.80% so far during the current month, following two straight months of gains.

The Travelers Companies Inc (TRV) was the second worst performer within the DJIA on April 6th, shedding 0.17% to close at $115.93 per share. It has been the 7th drop in the past 22 trading days and also a second straight one. April 6th low of $114.97 per share has been the lowest price level since March 24th, when a low of $114.67 was recorded. TRV has slumped 0.67% 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 third consecutive session on April 6th, going up 5.01%, to close at $32.93, while marking their 13th gain in the past 22 trading days, a fourth consecutive one and also the steepest one in more than 3 years. April 6th high of $33.00 per share has been an exact test of the high from December 3rd 2015. Pfizer has increased its advance to 11.10% so far during the current month, following five consecutive months of decline. According to reports by several media, the pharmaceutical giant officially terminated a $160 billion acquisition of Allergan Plc. This decision emerged two days after the US Treasury announced a new set of measures in order to restrain tax inversion practices.

Merck & Company Inc (MRK) was the second best performer within the Dow on Wednesday, advancing 2.56%, to close at $55.63. It has been the 11th gain in the past 22 trading days. April 6th high of $55.79 per share has been the highest price level since August 21st 2015, when a high of $57.62 was recorded. In addition, the daily trading volume (12.48M) has been the highest since March 18th. Merck & Co shares have added 5.14% to their value so far in April, following a 5.38% surge in the preceding month.

Daily and Weekly Pivot Levels

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

R1 – 17,733.69
R2 – 17,750.24
R3 (range resistance) – 17,766.80
R4 (range breakout) – 17,816.45

S1 – 17,700.59
S2 – 17,684.04
S3 (range support) – 17,667.48
S4 (range breakout) – 17,617.83

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