Stock Indices: Dow Jones falls a second straight day as Intel, Boeing plunge over 2%

On Friday Dow Jones Industrial Average traded within the range of 16,278.00-16,410.96. The benchmark closed at 16,391.99, edging down 0.13% (21.44 points) on a daily basis. It has been the 9th drop in the past 14 trading days and also a second consecutive one. In weekly terms, DJIA added 2.62% to its value last week, which has been the 3rd gain in the past 7 weeks and also the most notable one since the week ending on November 22nd 2015. Dow has slipped 0.46% so far during the current month, following two successive months of decline.

Among the companies included in the benchmark, 17 posted a daily decline on Friday, 12 posted a daily gain and 1 remained unchanged. Shares of Intel Corporation (INTC) plummeted the most on February 19th, going down 2.41% to close at $28.71. The daily rate of decrease has been the steepest one since February 5th, when Intel plummeted 2.45%. February 19th low of $28.71 per share has been the lowest price level since February 16th, when a low of $28.36 per share was registered, while the daily volume (42.06M) has been the highest since February 3rd. The producer of digital technology platforms has slumped 7.45% so far during the current month, following two successive months of decline.

Shares of Boeing Company (BA) lost 2.05% on February 19th to close at $115.16. It has been the first drop in the past five trading days, while the daily volume (6.92M) has been the highest since February 16th. The Boeing stock has lost 4.14% of its value so far in February, following three straight months of decline.

At the same time, the shares of Home Depot Inc (HD) registered the most notable daily increase within the DJIA on Friday, going up 1.43%, to close at $121.69, while marking their 6th gain in the past 8 trading days. February 19th high of $121.70 per share has been the highest price level since February 4th, when a high of $123.90 per share was reached. The house improvement retailer has dropped 3.24% so far in February, following two straight months of decline.

The Nike stock has been the second best performer within the Dow on Friday. Nike Inc (NKE) shares climbed 1.21% on the day to close at $59.31. It has been the 7th gain in the past 8 trading days and also a fifth consecutive one. February 19th high of $59.31 has been the highest price level since February 5th, when Nike shares rose as high as $59.84. The sports equipment producer has depreciated 4.35% so far during the current month, following two consecutive months of decrease.

On a weekly basis, 28 shares posted gains, while only 2 (Wal-Mart and McDonald’s) posted a slump during the business week ended on February 19th.

Correlation with other indices

Taking into consideration the daily closing levels of the major stock indices examined and the period February 15th-February 19th, we come to the following conclusions in regard to the strength of relationship:

DJIA to Bovespa (0.9863, or very strong)
DJIA to CAC 40 (0.9803, or very strong)
DJIA to Euro Stoxx 50 (0.9791, or very strong)
DJIA to FTSE 100 (0.9605, or very strong)
DJIA to S&P/TSX 60 (0.9441, or very strong)
DJIA to DAX (0.9212, or very strong)
DJIA to RTSI (0.8053, or strong)
DJIA to KOSPI (0.2620, or weak)
DJIA to Hang Seng (-0.0185, or very weak)
DJIA to Nikkei 225 (-0.2883, or weak)

During the past week, Dow Jones Industrial Average tended to have moved almost equally in one and the same direction with 6 major indices. This relationship has been the most pronounced between Dow and the Brazilian Bovespa and the least pronounced between Dow and the German DAX.

Additionally, DJIA tended to have moved strongly in one and the same direction with the Russian RTSI during the past week.

DJIA tended to have shown an insignificant correlation with the Japanese Nikkei 225 and the South Korean KOSPI during the period in question.

On the other hand, DJIA tended to have moved almost independently compared to Hong Kongs Hang Seng during the past week.

Daily and Weekly Pivot Levels

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

R1 – 16,404.18
R2 – 16,416.37
R3 (range resistance) – 16,428.55
R4 (range breakout) – 16,465.12

S1 – 16,379.80
S2 – 16,367.61
S3 (range support) – 16,355.43
S4 (range breakout) – 16,318.86

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

Central Pivot Point – 16,305.41
R1 – 16,598.42
R2 – 16,804.86
R3 – 17,097.87

S1 – 16,098.97
S2 – 15,805.96
S3 – 15,599.52