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The DOW Jones index continues to show great bullishness

Autor: Financial Market
2 min

The Dow Jones Industrial Average (DJIA) returned to generate gains and also obtained a new all-time high, taking the price to the 38280 point zone last week.

This excellent upward movement generated in the index was due to different factors in the fourth week of January 2024, such as uncertainties regarding interest rates, published macroeconomic data and the financial results report of some companies.

To begin with, the continuation of this rally in this month of January 2024, which has not stopped rising since October 2023, could be attributed to the decline in investor expectations that the Federal Reserve will lower interest rates in the first quarter of 2024. This change is due to the perceived as strength of the U.S. economy.

As a consequence, this increase in the price could be identified by certain macroeconomic data announced during the past week, quite positive for the U.S. economy.

On Wednesday 24, the manufacturing PMI was released, 50.3 versus 47.9 expected, and the services PMI, 52.9 versus 51 expected. Likewise, on Thursday the 25th, the GDP data was announced, generating an excellent increase of 3.3 % against a forecast of 2.0%.

These results have signaled that the economy is on the upswing and has avoided a deep recession.

Companies listed in the Blue Chips index, with great weight in the market, helped to continue a new day of gains, such as American Express, which did not deliver data as expected for the fourth quarter of 2023, EPS 2.62 vs. 2.64 and revenues of 15.8B vs. 16B, but experienced a significant increase of 7%, on Friday 26, generating a new all-time high and taking the price to the area of 204.00 USD per share.

We also have Microsoft Corporation, who is also listed in this index, which is in the area of historical highs and maintaining its capitalization of 3 trillion dollars, continuing to be the company with the largest marketcap in the world.

In conclusion, the Dow Jones index (US30) has shown us since October 2023 and the beginning of 2024, its great potential and growth. Regardless of its falls, we see how the index of the 30 industrial companies in the United States recovers and continues to generate gains year after year.

Photo by Nicholas Cappello on Unsplash