- The Dow Jones Industrial Average treaded water near 44,800 on Thursday.
- Equities are tepid as markets digest recent developments and mixed earnings.
- US data split on Thursday, with better unemployment claims but lagging GDP growth.
The Dow Jones Industrial Average (DJIA) churned on Thursday, marking in tracks around 44,700 but sticking close to the day’s opening bids. Equity markets are still digesting this week’s earnings reports from heavy-hitters like Microsoft (MSFT) and Tesla (TSLA), both of which missed the bottom line on fourth-quarter performance.
Along with Microsoft and Tesla, Meta Platforms (META) was the third megacap tech company to report Q4 earnings during Wednesday’s overnight session. Meta traded into a new all-time high post-earnings, while Tesla managed to shrug off misses in both earnings growth and revenue. Microsoft’s share price backslid after missing market expectations, keeping the tech sector hobbled on Thursday.
United States (US) Gross Domestic Product (GDP) grew by just 2.3% QoQ on an annualized basis in Q4, missing the median forecast of 2.6% and falling even further from the previous quarter’s 3.1%. The sharp warning shot across the bow of headline growth flummoxed equities, sparking a deer-in-the-headlights freeze from traders expecting better.
US Initial Jobless Claims for the week ended January 24 beat expectations, helping to bolster investor sentiment somewhat, but the figure is well within recent norms. Week-over-week new unemployment benefits seekers clocked in at 207K, beating the market’s expected print of 220K. The previous week showed 223K net new unemployment claimants.
Dow Jones news
Most of the Dow Jones’ listed securities are trading into the green on Thursday, though concentrated losses in the tech sector are keeping the overall index hobbled in the midrange. Nvidia lost another 3.5%, falling below $120 per share as the tech glut continues, adding to previous losses after China’s DeepSeek threw a spanner in the market’s comfortable assumption that US-based AI tech companies had the industry on lockdown. Microsoft tumbled 6% after missing earnings expectations, falling into $415 per share.
Dow Jones price forecast
The Dow Jones Industrial Average is struggling to make headway in the back half of the trading week, with intraday bids getting stuck in the mire around 44,800. Despite near-term waffling, the overall index is still tilted firmly into the bullish side, free-floating close to record highs above 45,000. The Dow Jones is up over 7.5% from its last swing low below 42,000, and has closed in the green for all but three of the last 12 consecutive trading days.
Dow Jones daily chart
Economic Indicator
Gross Domestic Product Annualized
The real Gross Domestic Product (GDP) Annualized, released quarterly by the US Bureau of Economic Analysis, measures the value of the final goods and services produced in the United States in a given period of time. Changes in GDP are the most popular indicator of the nation’s overall economic health. The data is expressed at an annualized rate, which means that the rate has been adjusted to reflect the amount GDP would have changed over a year’s time, had it continued to grow at that specific rate. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.
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