Stock Indices: Dow Jones rebounds, P&G and 3M earnings data disappoint, Fed decision ahead

On Tuesday Dow Jones Industrial Average traded within the range of 17,935.06-18,043.53. The benchmark closed at 17,990.32, inching up 0.07% (13.02 points) on a daily basis. It has been the 36th gain in the past 60 trading days. The daily high has been the highest level since April 21st, when a high of 18,107.29 was registered. The blue-chip gauge has risen 1.72% so far in April, following two consecutive months of gains.

Global markets anticipate the outcome from the Federal Reserves two-day policy meeting to be concluded today. It is largely expected that the Federal Open Market Committee (FOMC) will keep the target range for the federal funds rate intact between 0.25% and 0.50%. The official rate decision is scheduled at 18:00 GMT.

Among the companies included in the benchmark, 13 registered a decline and 17 recorded gains on Tuesday. The shares of Procter & Gamble Company (PG) recorded the worst performance within the Dow on April 26th, going down 2.28% to close at $79.55. It has been the 13th drop in the past 22 trading days and also the sharpest one since December 18th 2015, when the stock went down 2.69%. April 26th low of $79.21 has been the lowest level since January 28th, when a low of $78.61 was registered. PG stock has lost 3.35% so far during the current month, following a 2.52% surge in March. Yesterday the company reported its earnings per share decreased to $0.86 during the first quarter of 2016, after in Q4 2015 the EPS were reported at $1.04. Actual Q1 EPS, however, came above market consensus, pointing to earnings of $0.82 a share. Q1 revenue shrank to $15.76 billion from $16.92 billion in the final quarter of 2015. Actual Q1 revenue fell short of market expectations.

3M Company (MMM) was the second worst performer within the DJIA on April 26th, falling 1.31% to close at $166.18 per share. It has been the 11th drop in the past 22 trading days, a second consecutive one and also the steepest one since February 10th, when the stock went down 1.48%. April 26th low of $164.97 has been the lowest price level since April 6th, when a low of $164.84 was registered. 3M shares have dipped 0.27% so far in April, following three consecutive months of advance. It became clear that 3M earnings per share rose to $2.05 in Q1 from $1.66 in Q4 2015, but coming below market consensus, which pointed to an increase to $2.12. 3M revenue, on the other hand, was reported to have surged to $7.41 billion in Q1 from $7.30 billion in Q4 2015, outstripping the median forecast by experts.

At the same time, the shares of EI du Pont de Nemours and Company (DD) recorded the most notable daily increase within the DJIA on April 26th, going up 2.40%, to close at $67.55, while marking their 13th gain in the past 22 trading days and also the sharpest one since March 11th, when the stock rose 2.69%. April 26th high of $67.80 has been the highest price level since December 29th 2015, when a high of $67.88 was registered. DuPont has added 6.68% to its market value so far during the current month, following two consecutive months of gains. It became clear that the US Securities and Exchange Commission (SEC) is to complete the review of DuPonts merger with Dow Chemical Company by the end of June.

Boeing Company (BA) was the second best performer within the Dow on Tuesday, rising 1.90%, to close at $133.24. It has been the 13th gain in the past 22 trading days and also the steepest one since March 18th, when the stock went up 2.49%. April 26th high of $133.27 has been the highest level since April 19th, when a high of $133.85 a share was registered. The aircraft manufacturer has added 4.96% to its value so far in April, following a 7.41% surge in the prior month. Boeing is expected to report on Q1 earnings later on Wednesday.

Daily and Weekly Pivot Levels

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

R1 – 17,998.89
R2 – 18,008.84
R3 (range resistance) – 18,018.78
R4 (range breakout) – 18,048.61

S1 – 17,979.01
S2 – 17,969.06
S3 (range support) – 17,959.12
S4 (range breakout) – 17,929.29

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

Central Pivot Point – 18,006.53
R1 – 18,164.85
R2 – 18,325.94
R3 – 18,484.26

S1 – 17,845.44
S2 – 17,687.12
S3 – 17,526.03