Dow Jones Industrial Average rebounds as investors brace for key US data and earnings reports

• Dow Jones gains 350 points, recovering from last week’s loss, as investors anticipate GDP, Nonfarm Payrolls and PCE Price Index releases.
• Treasury yields climb with the 10-year note yield nearing 4.30%, amid speculation that the Fed could remain less dovish than anticipated.
• Strong performers include 3M (MMM), Goldman Sachs (GS) and McDonald’s (MCD), while Boeing (BA) and Cisco (CSCO) lag in the index.

The Dow Jones Industrial Average (DJIA) has recovered from Friday’s 300-point loss, climbing over 0.84% or 350 points even though US Treasury bond yields continued to rise. Investors are capitalizing ahead of the release of crucial economic data from the United States (US) that will feature the release of Gross Domestic Product (GDP) figures, Nonfarm Payrolls (NFP), and the Federal Reserve’s (Fed) favorite inflation gauge — the Personal Consumption Price Expenditures (PCE) Price Index.

The US 10-year Treasury note yield approaches 4.30%, up by over three-and-a-half basis points, amid speculation that the Fed could turn less dovish than expected. Investors eye the release of earnings reports on five of the “Magnificent Seven” mega caps as Alphabet (GOOG), Apple (AAPL), Amazon (AMZN), Microsoft (MSFT), and Meta (META) could rock the boat and increase volatility in the DJIA.

Apple (AAPL) revealed its latest Apple AI system, which is available as an update to some products compatible with certain iPhones, iPads and Macs. On Tuesday, Alphabet (GOOG) is expected to unveil earnings after the closing, followed by Meta (META) and Microsoft (MSFT) on Wednesday.

Dow Jones news

Twenty-two of the 30 companies listed on the DJIA are posting gains, led by 3M (MMM), up 4.50% at $130.36 per share. Goldman Sachs (GS) gained 1.92% to $522.44, and McDonald’s (MCD) gained 1.76% to $297.75 at the time of writing.

At the bottom of the pack lies Boeing (BA), which plunged 1.69% to $152.40. Cisco Systems (CSCO) lost 0.74% to $55.33, and International Business Machines (IBM) edged 0.71% lower to $213.15.

Dow Jones price forecast

The Dow Jones remains contained within Friday’s price action, forming an “inside day”, which has bullish implications. If the DJIA clears the October 25 peak at 42,596, the next stop would be 43,000. If surpassed, nothing would be in the bulls’ path to challenge the record high at 43,322.

Conversely, for a bearish scenario, the index should drop below last week’s bottom of 42,043, so sellers could push the Dow Jones toward the 50-day Simple Moving Average (SMA) at 41,848.

Momentum remains bullish as depicted by the Relative Strength Index (RSI), which just pierced above its neutral line. This hints that buyers bought the dip and are eyeing higher levels.

Dow Jones daily chart