US Wall St 30 – Trade the US Wall St 30
The US Wall St 30 – also referred to as the Dow Jones Industrial Average (DJIA) – is one of the oldest stock market indices. For traders, it continues to be one of the most popular with its high liquidity creating opportunities to generate lucrative returns. OANDA’s award-winning platforms allow you to trade the US Wall St 30 with attractive spreads and reliable execution.
What is the US Wall Street 30?
The US Wall Street 30 tracks the performance of the 30 largest publicly-owned companies in the United States. Unlike market capitalisation-weighted indices such as the DE30 or UK100, the US Wall Street 30 is a price-weighted index. Here, each of the constituent 30 stocks drives the index based on its price per share. The higher the price, the more it drives the index value.
Among the sectors represented in the US Wall Street 30 are financial services, pharmaceuticals and technology – with companies including Boeing, Microsoft, Visa and ExxonMobil.
How does the US Wall St 30 work?
As a price-weighted index, the performance of the 30 stocks on the US Wall St 30 can have an extensive impact on the entire US stock market. Trading takes place between New York Stock Exchange hours of 9.30am to 4.30pm weekdays (Eastern Time) – four hours behind GMT.
OANDA’s pricing for US Wall St 30 CFDs is based on future prices, which is influenced by feeds received from relevant exchanges. By reviewing ‘top of book’ prices, we calculate the midpoint price. In addition, OANDA also uses an automated adjustment schedule for the US Wall St 30.
What drives the Wall Street 30 price?
Domestic and international events can influence the Wall Street 30 price, which is a key reason why it is such a liquid – and popular – index for traders. The index is also often regarded as an indicator for the US economy, which is the largest in the world.
− Federal Open Market Committee policy decisions
− US economic data (employment or inflation rates)
− Political events in Washington and in other countries
− Shifting energy prices and supply/demand issues
US Wall Street 30 chart
Using OANDA’s real-time US Wall Street 30 chart can provide useful and beneficial insights into current or historical trends affecting trading positions. Updated to provide traders with the very latest conditions, the chart can help identify emerging trends at source – but it cannot be taken as a guarantee or prediction for future performance.
Q1 2020 Outlook
Wall Street closed in the red on January 22, 2020, as the US Center for Disease Control and Prevention confirmed the first case of the Chinese Coronavirus in the United States. The Dow Jones Industrial Average (DJIA) fell 152 points to close at 29,196.04. The virus that originated in Wuhan, China, has already claimed 6 lives and has infected 291 people. Concerns are growing regarding the economic impact of this virus, especially related to travel to and from China during the upcoming Lunar New Year travel rush. Panic and fear have hit the global financial markets, after scientists claimed that the virus can be transmitted from one person to another.
Economic Data to Look Out For: February and March 2020 Outlook
February 3, 2020: US Markit Manufacturing PMI January 2020
IHS Markit US Manufacturing PMI stood at 52.4 in December 2019. Reports of output and new business expansion are positive. Optimism is due to new product developments and growing investments in new facilities. Manufacturing PMI is expected at 52.20 by the end of Q1 2020.
February 5, 2020: US Balance of Trade December 2019
The trade deficit in the US narrowed to $43.1 billion in November 2019, almost matching market expectations of a $43.8 billion gap. Imports declined 1%, the lowest in 2 years, while exports increased 0.7%. Trade deficit is expected at $50 billion for December 2019.
February 7, 2020: US Non-Farm Payroll January 2020
US Non-Farm Payroll data came in at 145K for December 2019, below market expectations of 164K. However, the job sector seems to be on a solid footing, creating jobs for 111 consecutive months. The market expects 138K new jobs in January 2020.
February 13, 2020: US Inflation Rate January 2020
US consumer price inflation rate rose 2.3% YoY in December 2019, in line with market expectations. The core inflation rate is expected to remain at 2.3% in January 2020, while the CPI might show a slight increase to 2.4%. This will be crucial for the interest rate policy of the US Fed.
February 14, 2020: US Retail Sales MoM January 2020
US retail sales increased 0.3% MoM in December 2019, in line with market consensus. The rebound in the sales of food and drinks, clothes, and electronics and appliances is expected to continue. Retail sales for January 2020 is expected to rise 0.6%.
February 19, 2020: FOMC Minutes of Meeting
US Fed officials agree that the interest rate will likely remain unchanged for Q1 2020. Nevertheless, the meeting will be important to understand the stance of the central bank for the future.
February 27, 2020 US GDP Growth Rate Q4 2019
An annualised 2.1% GDP growth rate was recorded for Q3 2019. Economists expect the GDP to have grown at the same rate in Q4 2019.
March 6, 2020: US Non-Farm Payroll February 2020
The market expects job additions of 138K in January 2020. A further 150K jobs could be added in February 2020.
March 18, 2020: US Federal Reserve Interest Rate Decision
The US Federal Reserve left the target range for its federal funds rate unchanged at 1.5%-1.75% on December 11, 2019. The rate is expected to remain constant at 1.75% for the time being.
Q1 2020 Predictions: Political Events That Could Impact the US Wall St. 30
The Presidential impeachment proceedings in the Senate will be an event to watch out for. Any escalation in the US-Iran conflict could move the markets too. Earnings reports for Q4 2019 will impact the Dow, as will any developments on the Coronavirus epidemic. Although scientists say it isn’t as deadly as the SARS virus, investors are likely to keep their eyes on this one. Expectations of a soft Brexit on January 31 are not expected to sway the markets much, however it is a key event that traders need to stay on top of.