After the Fiscal cliff, there was no major event in the United States. But, the Fiscal cliff that was proposed was very dull and the markets couldn’t cheer it. The markets have been falling since then.

But, today, the markets saw a good up move in the latter half of the day on strong earnings from Citigroup and comments from the President, Barack Obama. Republican House Speaker John Boehner and President Barack Obama talked on the phone about the Fiscal cliff and most of the analysts expect that there could be some good news.

There was no major news that came out after these leaders talked, but the markets cheered and the Dow Jones ended up 82 points to close at 13034. Speaking to CNBC, Obama said, “Another way of putting this is we can probably solve this in about a week. It\’s not that tough, but we need that conceptual breakthrough. There is no prospect (for) an agreement that doesn\’t involve rates going up on the top 2 percent of the wealthiest Americans.\”

Technical Analysis:

The markets have gone up once the news came out that these leaders talked on the phone about the Fiscal cliff passed two days ago. Obama is keen on rising tax rates on the wealthy Americans and that is the sole reason for not accepting the republic policy.

Not only that, Citi group’s earnings also came ahead of estimates and that made the United States markets to add on to their gains.

The Dow Jones retraced a little by the end of trade but finally, was up by 0.64 percent. The index started on a flat to slightly positive note and gave up its gains in the morning itself. But, in the morning to afternoon session, the markets picked and rose nearly 0.9 percent. At the end of the day, some of the gains were knocked down.

Important stocks to watch out for:

Citigroup rose nearly 6 percent as the company reported earnings today. The company announced that is is taking repositioning actions and has cut down jobs worldwide. The company said that it would cut expenses and increase profitability and efficiency. The company’s shares closed at $36.46.

Pandora Media is also in the news today after the company announced its results yesterday. The company’s shares fell by around 23 percent after market hours yesterday. The company said that its revenues rose quite significantly to $120 million, up 60 percent.

But the guidance of the company for the 4th quarter was a shocker which made the company’s shares fall by 17.5 percent.

Forecast:

Dow Jones is trading at its minor support level of ‘13000’. The next support is at ‘12600’. So, it needs to sustain this level to see more highs going forward. The main thing is the Dow Jones is becoming resilient to all the negative news going in the economy right now.

Many analysts say that this negative news is factored in, but we have to wait and see. The earnings season is coming up and no great shocks in there, would take the markets to new highs.

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Category: Finances
Keywords: Fiscal cliff, Dow Jones, United States