Stock Indices: Dow Jones rebounds during the first May session, Home Depot, Microsoft support

On Monday Dow Jones Industrial Average traded within the range of 17,774.05-17,912.29. The benchmark closed at 17,891.16, rising 0.66% (117.52 points) on a daily basis. It has been the 38th gain in the past 64 trading days and also the sharpest one since April 13th, when the gauge advanced 1.06%. The daily high has been the highest level since April 28th, when a high of 18,035.73 was registered. In weekly terms, the Dow lost 1.28% of its value in the past week. It has been the 7th drop in the past 17 weeks and also the sharpest one since the week ended on February 14th. The blue-chip gauge rose 0.50% in April to mark its third consecutive month of advance.

Among the companies included in the benchmark, 5 registered a decline and 25 recorded gains on Monday. The shares of Boeing Company (BA) recorded the worst performance within the Dow on May 2nd, going down 0.59% to close at $134.01. It has been the 7th drop in the past 21 trading days. Boeing stock added 6.19% to its value in April, following another 7.41% surge in March. Last week it became clear that Delta Air Lines Inc initiated an order for Canadian Bombardiers CSeries, which raised concerns over a possible depletion of Boeings market share. Earlier the aircraft manufacturer reported its Q1 earnings per share rose to $1.74 from $1.60 in the final quarter of 2015, but fell short of market consensus, pointing to an increase to $2.13. Boeing’s Q1 revenue was reported at $22.63 billion, outstripping the median forecast by analysts, but down from $23.57 billion in Q4 2015.

International Business Machines (IBM) was the second worst performer within the DJIA on May 2nd, shedding 0.46% to close at $145.27 per share. It has been the 10th drop in the past 21 trading days and also a third consecutive one. The tech giant lost 3.64% of its market value in April, following two consecutive months of advance. In March the stock surged 15.58%, or the most in more than 3 years.

At the same time, the shares of Home Depot Inc (HD) recorded the most notable daily increase within the DJIA on May 2nd, going up 1.61%, to close at $136.05, while marking their 9th gain in the past 21 trading days, a second consecutive one and also the sharpest one since March 11th, when the stock rose 2.04%. May 2nd high of $136.25 has been the highest price level since April 27th, when a high of $136.28 was registered. Home Depot added 0.34% to its market value in April, following a 7.50% advance in March.

Microsoft Corporation (MSFT) was the second best performer within the Dow on Monday, rising 1.58%, to close at $50.66. It has been the 9th gain in the past 21 trading days and also the steepest one since March 29th, when the stock went up 2.19%. May 2nd high of $50.75 has been an almost exact test of the high from April 28th. The stock lost 9.70% of its market value in April, following an 8.55% surge in March. The shares received a boost, after Merrill Lynch projected a 30% bounce during the upcoming months.

Daily and Weekly Pivot Levels

By employing the traditional calculation method, the Tuesday pivot levels for DJIA are presented as follows:

Central Pivot Point – 17,859.17
R1 – 17,944.28
R2 – 17,997.41
R3 – 18,082.52

S1 – 17,806.04
S2 – 17,720.93
S3 – 17,667.80

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

Central Pivot Point – 17,836.76
R1 – 18,021.54
R2 – 18.269.44
R3 – 18,454.22

S1 – 17,588.86
S2 – 17,404.08
S3 – 17,156.18