Stock Indices: Dow Jones rises a third straight day ahead of Fed policy decision, Apple and Wal-Mart support

On Tuesday Dow Jones Industrial Average traded within the range of 17,120.38-17,251.12. The benchmark closed at 17,251.53, edging up 0.13% (22.40 points) on a daily basis. It has been the 17th gain in the past 31 trading days and also a third consecutive one. The blue-chip gauge has extended its advance to 4.45% so far during the current month, following a 0.30% gain in February.

Among the companies included in the benchmark, 11 posted a daily decline on Tuesday and 19 posted a daily gain. Shares of Pfizer Inc (PFE) recorded the worst performance within the Dow for a second straight day on Tuesday, going down 1.86% to close at $29.54. It has been the 13th drop in the past 21 trading days, a second consecutive one and also the steepest one since February 4th. March 15th low of $29.30 per share has been the lowest price level since February 19th, when a low of $29.18 a share was registered. Pfizer shares have lost 0.44% of their value so far in March, following four consecutive months of decline. Pfizer has recently been pressured, after its cough syrup brand Corex was banned in India.

Merck & Company Inc (MRK) was the second worst performer within the DJIA on March 15th, going down 1.24%, to close at $52.42. It has been the 11th drop in the past 21 trading days, a second consecutive one and also the sharpest one since February 11th. March 15th low of $51.95 per share has been the lowest price level since March 7th, when a low of $51.75 was registered. The health care services provider has advanced 4.40% so far during the current month, following four consecutive months of decline.

At the same time, the shares of Apple Inc (AAPL) registered the most notable daily increase within the DJIA on March 15th, going up 2.01%, to close at $104.58, while marking their 16th gain in the past 22 trading days, a fifth successive one and also the steepest one since February 16th. March 15th high of $105.18 per share has been the highest price level since January 5th, when a high of $105.85 per share was reached. In addition, the daily volume (40.07M) has been the highest since March 4th. The tech giant has added 8.16% to its value so far in March, following four consecutive months of decline. Recent performance has been supported by a positive outlook over demand for Apples iPhone. Morgan Stanley projects that iPhone demand may reach as high as 56.5 million units, which would result in $55 billion of quarterly revenue. According to Morgan Stanley analysts, this would outstrip the median forecast regarding the tech giants Q1 earnings per share, which points to $0.20.

Wal-Mart Stores Inc (WMT) was the second best performer within the Dow on March 15th, appreciating 1.08%, to close at $68.09 per share. It has been the 12th gain in the past 21 trading days, a second consecutive one and also the steepest one since March 7th. March 15th high of $68.35 per share has been the highest price level since March 8th, when Wal-Mart shares recorded a high of $68.47. The worlds largest retailer has added 2.64% to its value so far in March, following a 0.03% dip in February.

Today stock traders will be paying attention to another macroeconomic data string coming out of the United States, as well as to the highly anticipated outcome from the Federal Reserves policy meeting. The Federal Open Market Committee (FOMC) is widely expected to leave the target for the federal funds rate unchanged at 0.500% at its two-day policy meeting, scheduled to be concluded today, after keeping the target range intact in January.

Daily and Weekly Pivot Levels

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

R1 – 17,263.51
R2 – 17,275.50
R3 (range resistance) – 17,287.48
R4 (range breakout) – 17,323.44

S1 – 17,239.55
S2 – 17,227.56
S3 (range support) – 17,215.58
S4 (range breakout) – 17,179.62

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

Central Pivot Point – 17,085.09
R1 – 17,348.31
R2 – 17,483.32
R3 – 17,746.54

S1 – 16,950.08
S2 – 16,686.86
S3 – 16,551.85