Stock Indices: Dow Jones rises a second day, as weaker-than-anticipated US Non-farm Payrolls report curbs hike expectations

On Friday Dow Jones Industrial Average traded within the range of 17,580.38-17,744.54. The benchmark closed at 17,740.50, rising 0.45% (79.79 points) on a daily basis. It has been the 40th gain in the past 68 trading days and also a second consecutive one. The daily high has been the highest level since May 3rd, when a high of 17,870.75 was registered. In weekly terms, the Dow edged down 0.19% during the past week. It has been the 8th drop in the past 18 weeks and also a second consecutive one. The blue-chip gauge has retreated 0.19% so far during the current month, following three successive months of advance.

US equities gained ground on Friday, following the official government report on US employment for April. Employers in all sectors of economy with the exclusion of the farming industry added 160 000 new jobs last month, or the slowest employment growth since September 2015, the Bureau of Labor Statistics (BLS) said on May 6th, while the rate of unemployment remained stable at 5.0%. The March figure was revised down to 209 000 job positions added. The new data, which fell short of market consensus, to some extent, curbed expectations that the Federal Reserve may tighten policy by the end of H1 2016.

Among the companies included in the benchmark, 6 registered a decline and 24 recorded gains on Friday. The shares of Merck & Company Inc (MRK) recorded the worst performance within the Dow on May 6th, going down 0.91% to close at $53.60. It has been the 11th drop in the past 20 trading days and also a fourth consecutive one. May 6th low of $53.06 has been the lowest level since April 1st, when a low of $52.44 was registered. Merck & Company Inc stock has lost 2.26% of its value so far in May, following two consecutive months of advance. In April the shares added 3.65% to their market value.

At the same time, the shares of Wal-Mart Stores Inc (WMT) recorded the most notable daily increase within the DJIA on May 6th, going up 1.55%, to close at $68.25, while marking their 11th gain in the past 20 trading days, a third consecutive one and also the sharpest one since April 12th, when the stock rose 2.08%. May 6th high of $68.26 has been the highest price level since April 29th, when a high of $68.82 was registered. In addition, the daily trading volume (9.83M) has been the highest since April 29th. Wal-Mart has added 2.06% to its market value so far in May, following a 2.37% drop in April. Last week the retailer revealed its plans to fill 9 000 front-of-the-store greeter positions across the United States.

In weekly terms, 8 companies recorded gains during the business week ended on May 6th and 22 recorded a drop. Caterpillar stock has been the worst weekly performer within the Dow, while the Pfizer shares marked the best performance.

Daily and Weekly Pivot Levels

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

R1 – 17,755.68
R2 – 17,770.73
R3 (range resistance) – 17,785.77
R4 (range breakout) – 17,830.92

S1 – 17,725.58
S2 – 17,710.53
S3 (range support) – 17,695.49
S4 (range breakout) – 17,650.34

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

Central Pivot Point – 17,744.45
R1 – 17,908.53
R2 – 18,076.42
R3 – 18,240.50

S1 – 17,576.56
S2 – 17,412.48
S3 – 17,244.59