Dow Jones Cautious Ahead Of Debt Ceiling:

The Dow Jones is trading a bit cautious ahead of the United States debt ceiling vote which is going to take place later this day. The Dow Jones has been consolidating and has been trading in this 13200 to 13550 range in the past few days.

We have seen that the Dow Jones and all the major United States indices have broken their important resistance levels but the break out hasn’t been at a convincing level. So, we can’t clearly say that the index has broken out. We need to wait and watch for the index to stay above the 13500 level for the next few days.

Most of the investors are watching out for the Debt ceiling meet. Barack Obama, the president of the United States, said, “We must make the hard choices to reduce the cost of health care and the size of our deficit. But we reject the belief that America must choose between caring for the generation that built this country and investing in the generation that will build its future.”

Analysts say that most of the concentration is on the health care sector and about the Fiscal deficit. For the past few months, investors in United States have been a little uncomfortable over lack of clarity on the Fiscal deficit. But, most of the investors are hoping that they would get some clarity over this in this Debt ceiling meet today.

Obama also said, “The commitments we make to each other – through Medicare, and Medicaid, and Social Security – these things do not sap our initiative; they strengthen us. They do not make us a nation of takers; they free us to take the risks that make this country great.”

Technical Analysis:

Markets need to stay above this 13500 level for the next few days to confirm that the break out has happened and investors could look out for new levels like 13800 and 14000 in the next few months. On the down side, the markets will find good support at 13000 level. On the other hand, the fourth quarter earnings have been good and that is also helping the markets to stay afloat.

Stocks to watch out for:

Novartis is in the news today after the company released excellent set of numbers in the fourth quarter. The drug maker said that the company’s net profit rose to 2.08 billion dollars and investors cheered this news. The company has been reporting strong growth from the past few quarters.

In the fourth quarter, the sales of the company have been flat at 14.83 billion dollars. The company also announced that the chairman and former chief executive, Daniel Vasella, will leave the company in the next month. The company is trading up nearly 5 percent at around 68 dollars, last time we checked.

Unilever is also in the news today after the company said that it’s net sales grew 7.8 percent. The company’s net profit grew 4.5 percent. The shares of the company went up nearly 2.5 percent on the back of this news.

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Category: Finances
Keywords: Dow Jones, United States, ASX, Dollar index, Brent Oil, Unilever, BHP Billiton, Boral, Earnings