Dow Jones Industrial Average cautiously higher on Thursday as markets await key inflation print

• Dow Jones continues to churn just above 39,000.00 after Thursday’s mixed data.
• US data came in mixed on Thursday, leaving the American market session in the lurch.
• Investors now pivot to face Friday’s US PCE Price Index inflation print.

The Dow Jones Industrial Average (DJIA) went sideways on Thursday, finding tentative gains but battling the downside as traders grapple with a mixed print on the US data docket. US Initial Jobless Claims printed better than expected, but still on the higher end of recent figures, while US Personal Consumption Expenditures (PCE) rose faster than expected in Q1. Equities will now be on the lookout for Friday’s US PCE Price Index inflation, which is still expected to show an overall easing in core price pressures in May.

US Initial Jobless Claims for the week ended Jun 21 came in better than expected, showing 233K net new jobless benefits seekers compared to the forecast 236K, and down slightly further from the previous week’s 238K. The four-week average for Initial Jobless Claims jumped to 236K, bringing the newest week-on-week figure back below the running average.

US Gross Domestic Product (GDP) met expectations on Thursday, with Q1 GDP slightly revised to 1.4% from the initial print of 1.3%. Core Personal Consumption Expenditures in the first quarter also rose slightly, ticking up to 3.7% QoQ versus the forecast hold at 3.6%. Thursday’s upcoming Presidential debate, due to start after the day’s market close, will draw some attention as investors keep an eye out for possible policy hints from candidates.

Friday’s US PCE Price Index inflation print will be the week’s key data figure as investors hope for continued cooling in US inflation numbers to help push the Federal Reserve (Fed) closer toward rate cuts. At current cut, core PCE Price Index inflation is forecast to tick down to 0.1% MoM in May from 0.2%. 

Dow Jones news

The Dow Jones is finding slim gains on Thursday after a firm surge in familiar favorites, but overall securities remain mixed. About half of the Dow Jones’ constituent securities are in the red for the day, with losses led by Merck & Co Inc. (MRK), which fell 2.25% to $128.55 per share and shed around three points on Thursday.

On the high side, Salesforce Inc. (CRM) soared around 6% to $256.82 per share as the company gears up for its latest shareholder meeting on Thursday.

Dow Jones technical outlook

The Dow Jones index shrugged off an early decline on Thursday, rallying to a thin gain into the 39,250.00 region. Still, bullish momentum remains tepid, and the major equity index is settling into a soft churn pattern in intraday trading.

Daily candlesticks are holding onto chart paper just north of the 50-day Exponential Moving Average (EMA) at 38,889.40, but topside momentum remains limited and bidders are running out of steam as the index trades south of recent all-time highs around the 40,000.00 major price handle.

Dow Jones five minute chart

Dow Jones daily chart