Dow Jones, the S&P 500, and Nasdaq price forecast ahead of a busy week

Wall Street’s three main indexes weakened last week after Goldman Sachs, Morgan Stanley, Wells Fargo, and Citigroup posted first-quarter results that fell from last year.

Citigroup’s first-quarter earnings tumbled 44% from a year ago; Wells Fargo’s first-quarter earnings also missed expectations, while Goldman Sachs and Morgan Stanley posted first-quarter results that topped Wall Street expectations. Ryan Detrick, the chief market strategist at LPL Financial, said:

It’s a mixed bag earning season so far, and that, coupled with high inflation and the hawkish Fed have led to selling ahead of the holiday weekend. There are some concerns this earnings season, and expectations are the lowest since the recovery started.

This week, Bank of America, Johnson & Johnson, IBM, Netflix, Tesla, Procter & Gamble, AT&T, Philip Morris, Snap, American Express, Schlumberger, and Verizon Communications will report quarterly results.

It is important to say that the US retail sales rose 0.5% in March and initial jobless claims climbed to 185,000 during the week ended April 9, above the 170,000 anticipated in a survey compiled by Bloomberg.

The US also reported the March Consumer Price Index rose to 8.5% YoY, which is a fresh multi-decade high, and the US Federal Reserve officials continue to anticipate a 50 bps rate hike in May.

The Food Price Index hit a new record high of 159.3 in March, up by almost 13% from February, proving that inflation is likely to continue higher than predicted.

The global chaos is also fueling the risk-averse sentiment; China has introduced new lockdowns, which cause supply disruption, while Russian attacks on Ukraine sent commodity prices to multi-year highs.

S&P 500 down -2.1% on a weekly basis

For the week, S&P 500 (SPX ) weakened by -2.1%, which marked the S&P 500’s second weekly loss in a row.

Data source: tradingview.com

The global chaos continues to make investors nervous, and if the price falls below 4,200 points, it would be a strong “sell” signal.

DJIA down -0.8% on a weekly basis

The Dow Jones Industrial Average (DJIA) weakened -by 0.8% for the week and closed at 34,451 points.

Data source: tradingview.com

The strong support level stands at 34,000 points, and if the price falls below this level, the next target could be 33,500 points. The upside potential is probably limited for the week ahead; still, if the price jumps above 35,000 points, the next target could be 35,300 points.

Nasdaq Composite down -2.6% on a weekly basis

Nasdaq Composite (COMP) has lost -2.6% on a weekly basis and closed at 13,351 points.

Data source: tradingview.com

This marked Nasdaq’s second weekly loss in a row, and if the price falls again below 13,000 points, it would be a strong “sell” signal.

Summary

The Dow Jones, the S&P 500, and the Nasdaq ended lower last week, and investors will continue to watch the quarterly earnings reports carefully. This week, Bank of America, Johnson & Johnson, IBM, Netflix, Tesla, Procter & Gamble, AT&T, Philip Morris, Snap, American Express, Schlumberger, and Verizon Communications will report quarterly results.

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