Market Analysis: Inflation Has Investors Holding Their Breaths!

The price of the Dow Jones ended 0.19% lower on Monday but is trading 0.09% higher during this morning’s Asian and European Session. however, the performance during the US session will depend on the PPI report. Of the top 15 most influential stocks, 12 are trading higher while 3 are trading lower this morning.

In the pre-trading hours, Home Depot emerges as the top performer, gearing up to unveil its earnings data shortly. Analysts anticipate a boost in Earnings Per Share from $2.82 to $3.60, with Revenue expected to reach $36.65 Billion. While the company has surpassed expectations over the past year, concerns linger over lower sales figures. Despite trading 1.00% lower this year, the stock boasts a robust dividend yield of 2.65%. A positive earnings report could drive stock prices higher, lending significant support to the Dow Jones.

However, the spotlight remains on this afternoon’s Producer Price Index and tomorrow’s Consumer Price Index, both pivotal events for investors. Hopes are pinned on lower inflation figures, as a decline could fuel an uptick in the USA30 and other indices. Conversely, steady or higher-than-expected readings could disappoint shareholders, especially considering their potential impact on interest rates. If inflation rises, the Federal Reserve may maintain interest rates for 2024 unless circumstances change. According to recent surveys, 11% of market participants anticipate no interest rate cuts this year.

USA30 – Technical Analysis and Signals

Price action is not yet the best indicator due to the upcoming events, which can significantly change the momentum and direction. Nonetheless, the price is currently trading above VWAP and Cumulative Delta indicates more buy orders than sell orders. The price also trades above the 75-BAR EMA and above the 50.00 level on the RSI. According to momentum indicators and price action, buy signals are likely to materialize above $39,588.00. While bearish signals may develop if the price drops below $39,413.34.