Stock Indices: Dow Jones loses over 1%, dragged down by Chevron, JP Morgan, US consumer confidence index

On Tuesday Dow Jones Industrial Average traded within the range of 16,403.53-16,610.39. The benchmark closed at 16,431.78, plummeting 1.14% (188.88 points) on a daily basis. It has been the 10th drop in the past 16 trading days and also the sharpest one since February 11th. The daily low has been the lowest level since February 19th, when the blue-chip gauge went down as low as 16,278.00.

Among the companies included in the benchmark, 27 posted a daily decline on Tuesday and 3 posted a daily gain. Shares of Chevron Corporation (CVX) plunged the most on February 23rd, going down 4.40% to close at $84.91. It has been the 9th drop in the past 16 trading days. February 23rd low of $84.70 per share has been the lowest price level since February 16th, when a low of $83.31 per share was registered, while the daily volume (10.66M) has been the highest since February 17th. Chevron has lost 1.80% of its value so far during the current month, following two successive months of decline.

The shares of JP Morgan Chase & Co (JPM) marked the second worst performance within the Dow on Tuesday, falling 4.18% to close at $56.12. It has been the 9th drop in the past 16 trading days and also the most significant one since February 11th, when JP Morgan plummeted 4.41% on the day. February 23rd low of $55.96 per share has been the lowest price level since February 12th, when a low of $55.17 per share was registered, while the daily volume (31.77M) has been the highest since February 12th. The financial solutions provider has depreciated 5.68% so far during the current month, following two consecutive months of decline.

Yesterday JP Morgans Corporate & investment Bank CEO, Daniel Pinto, said investment banking fees have been 25% lower in Q1 compared to the same period a year ago, while the divisions market revenue has shrunk 20%. JP Morgan also stated it will reserve $600 million in order to cover energy and commodity loans in Q1, which will bring the total reserves to $1.6 billion. However, the banking institution warned that it will probably be urged to bolster its reserves by another $1.5 billion, in case crude oil tested the $25-per-barrel level during the upcoming 18 months.

At the same time, the shares of Home Depot Inc (HD) registered the most notable daily increase within the DJIA on Tuesday, going up 1.37%, to close at $124.53, while marking their 9th gain in the past 16 trading days and also a third consecutive one. February 23rd high of $127.19 per share has been the highest price level since January 13th, when a high of $127.47 per share was reached. Additionally, the daily volume (11.17M) has been the highest since February 8th. The house improvement retailer has lost 0.98% of its value so far in February, following two straight months of decline.

Meanwhile, the Conference Board research group reported Tuesday that confidence among consumers in the United States worsened in February. The key barometer fell sharply to a reading of 92.2, well below market expectations pointing to a lesser drop, following a revised down level of 97.8 in January (98.1 previously). February’s level of confidence has been the lowest since July 2015, when the index was reported at a revised up level of 91.0 (90.9 previously). The Present Situation Index went down to 112.1 in February from 116.6 in the preceding month, while the Expectations Index slumped to a reading of 78.9 from 85.3 in January.

Daily and Weekly Pivot Levels

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

R1 – 16,450.88
R2 – 16,469.84
R3 (range resistance) – 16,488.81
R4 (range breakout) – 16,545.69

S1 – 16,412.96
S2 – 16,394.00
S3 (range support) – 16,375.03
S4 (range breakout) – 16,318.15

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