Stock Indices: Dow Jones rebounds on oil price surge, Apple supports

On Monday Dow Jones Industrial Average traded within the range of 17,531.76-17,755.80. The benchmark closed at 17,710.71, surging 1.00% (175.39 points) on a daily basis. It has been the 43rd gain in the past 74 trading days and also the sharpest one since May 10th. The daily high has been the highest level since May 12th, when a high of 17,798.19 was registered. The blue-chip gauge has edged down 0.36% so far during the current month, following three successive months of advance.

US equities received a boost, as crude oil futures tested highs unseen since early November 2015 on Monday. May 16th marked the 59th gain in crude oil prices out of the past 106 trading days. Oil for June delivery went up as high as $47.98 per barrel on May 16th, or the highest price level since November 4th, and closed at $47.86, soaring 3.57% compared to Friday’s close.

Among the companies included in the benchmark, only 4 registered a drop and 26 recorded gains on Monday. The stock of the Travelers Companies Inc (TRV) recorded the largest drop within the Dow on May 16th, edging down 0.38% to close at $112.24. It has been the 12th drop in the past 21 trading days and also the steepest one since May 4th. May 16th low of $111.94 has been an almost exact test of the low from May 13th. Travelers Cos shares have trimmed their advance to 2.13% so far in May, following a 5.83% slump in the preceding month. The latter has been the sharpest monthly decline since August 2015.

Nike Inc (NKE) was the second worst performer within the DJIA on Monday, shedding 0.30% to close at $57.14 per share. It has been the 11th drop in the past 21 trading days and also a second consecutive one. May 16th low of $56.65 has been the lowest price level since February 12th, when a low of $55.50 a share was registered. In addition, the daily trading volume (8.05M) has been the highest since May 12th. The athletic apparel manufacturer has lost 3.05% of its market value so far in May, following five consecutive months of decline. In April the stock went down 4.12%.

At the same time, the shares of Apple Inc (AAPL) recorded the most notable daily increase within the DJIA on May 16th, going up 3.71%, to close at $93.88, while marking their 6th gain in the past 21 trading days and also the sharpest one since March 1st, when a 3.97% surge was registered. May 16th high of $94.39 has been the highest level since May 4th, when a high of $95.90 was reached. The tech giant has gained 0.15% so far in May, following a 13.99% slump in April. The latter has been the most considerable monthly drop since January 2013, when the stock plunged 14.40%. Yesterdays performance came after it became clear that Warren Buffetts Berkshire Hathaway held a stake of 9.8 million shares in Apple. Investor sentiment has recently been dampened, after in April Carl Icahn, an activist investor, cut short his holdings of the Apple stock.

EI du Pont de Nemours and Company (DD) was the second best performer within the Dow on May 16th, going up 2.27%, to close at $64.34. It has been the 8th gain in the past 21 trading days and also the steepest one since April 26th, when the stock went up 2.40%. DuPont shares have trimmed losses to 2.38% so far in May, following three consecutive months of gains. In April the stock advanced 4.09%.

Daily and Weekly Pivot Levels

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

R1 – 17,730.29
R2 – 17,750.82
R3 (range resistance) – 17,771.36
R4 (range breakout) – 17,832.97

S1 – 17,689.21
S2 – 17,668.68
S3 (range support) – 17,648.14
S4 (range breakout) – 17,586.53

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

Central Pivot Point – 17,660.80
R1 – 17,809.13
R2 – 18,082.93
R3 – 18,231.26

S1 – 17,387.00
S2 – 17,238.67
S3 – 16,964.87