US Indices On The Verge Of A Breakout:

All the major indices in the United States are on the verge of a long term breakout which if happened, would take these indices to new all time highs. There is some interesting data which is going to come out of the United States this week. These data will most possibly not move the markets but will lift the mood of the investors.

The markets are quite clearly waiting and watching for the results and most of the analysts are expecting dull growth in earnings this quarter. Yesterday, Alcoa came out with earnings and that lifted the mood of most of the investors. The net profit and revenue for this company rose more than anticipated and that made the stock to trade higher in yesterday’s session.

Commenting on the results, Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer, said, “Alcoa hit record profitability in our mid and downstream businesses, and continued to drive efficiency in our upstream businesses in the fourth quarter, all while cutting debt and maintaining our cash position we overcame volatile metal prices and global economic instability to deliver on our targets for the fourth year in a row. We enter 2013 in a strong position to maximize profitable growth.”

The company is focusing on cutting down its debt in the coming quarters. The improvement in Chinese data is also improving the sentiment around in the United States. Some of the analysts expect that this earnings season will help the Dow Jones to cross its important resistance level of 13500.

Technical Analysis:

On the technical side, the Dow Jones is finding some important resistance at that 13500 mark and will find it difficult to cross that mark. The Dow Jones has been moving up since the start of this month and a consolidation phase is most likely to continue. But, a movement, either up or down, is yet to be known.

This might depend on the earnings season and that may help the Dow Jones to break that resistance level. On the down side, you would find some important support at 13000. This support has been strong and the Dow Jones is most likely to trade above this mark for the next few months.

There is another important ECB meet which will be held at the end of this week and that would make the world markets to fluctuate strong.

Stocks to watch out for:

Boeing Company is in the news today after the company has been facing problems with its airline, 787, lately. The stock has been falling from the past few days on problems about this. This aerospace blue chip company has reported that another 787 dream liner has been grounded due to issues with the plane. Despite this, the company has seen its shares rising nearly 3 percent in yesterday’s trade.

Herbalife is also in the news after an analyst said that the stock is clearly headed towards lower levels and that made the stock to fluctuate in trade. Anyways, the stock ended flat at 39.9 dollars per share.

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Category: Finances
Keywords: Dow Jones, Boeing, Debt, Planes, ASX, Herbalife, ALcoa