• Dow Jones futures are trading flat on Thursday ahead of the market open.
  • Dow Jones futures advanced on Tuesday, but the Nasdaq led the way.
  • Dow Jones futures are still locked in a range pattern with no breakout insight.

Dow Jones futures advanced on Wednesday as risky assets saw inflows despite another record reading from the producer price index (PPI). It appears investors are now largely immune to inflationary shocks and bond yields fell for the second day in a row on Wednesday. This was despite a high CPI number on Tuesday and the PPI on Wednesday. Bond market positioning, as noted, became overdone and a pullback was likely. We see this set continue.

Dow Jones futures news

Investment banking giants Goldman Sachs (GS) and Morgan Stanley (MS) performed strongly on Thursday, benefiting from rising volatility in financial markets following the Ukraine crisis. Wells Fargo, by comparison, wasn’t as positive as mortgage lending slowed due to higher interest rates. It’s an early warning system for house prices and for the broader US economy, but it will take time to materialize. Usually, Wells and other commercial banks should benefit from higher yields, but only if loan growth remains steady. Of course, the big news is that Elon Musk is upping the ante in the battle for Twitter (TWTR). He has now offered $54.20 cash for 100% of the business and has threatened to walk away unless he gets approval. Twitter (TWTR) stock soared to nearly $53 when the offer was announced, but has since fallen slightly.

Dow Jones Futures Forecast

34,664 remains our near term pivot and it could be in jeopardy on Thursday. Above and we think a move to 35,752 is more likely.

Dow Jones Futures Chart, Daily

On the short-term 15-minute chart below, we can identify strong support now at 34,012. Below that and a move below 33,000 is likely.

Dow Jones Futures Chart, 15 Minutes