Dow Jones Industrial Average tops all-time highs on warm Monday

• Dow Jones hits new high despite thin volumes.
• Stock moves remain limited as investors recover from Fed losses.
• Key US inflation data looms at the end of the week.

The Dow Jones Industrial Average (DJIA) slipped higher to test a new record high of 41,419.65 on Monday, but investors are still reeling from last Friday’s rally after the Federal Reserve (Fed) all but confirmed it will start a new rate cut cycle. in September.

Orders for U.S. durable goods helped keep supplies of physical manufacturing inventories steady on Monday, despite an overall decline in the usual technology sector. US durable goods orders rose a surprising 9.9% in July, well above the forecast of 4.0% and completely reversing the revised -6.9% contraction from the previous month.

Despite the increase in durable goods orders, some trepidation remains; excluding transportation costs, durable goods orders actually contracted -0.2% on the month, worse than the previous month’s forecast of 0.0% and a warm 0.1%, which was revised down from 0.5%.

Most of the trading week will be a quiet affair on the economic calendar. US Q2 Gross Domestic Product (GDP) numbers are due on Thursday, but are generally expected to hold steady at 2.8% on an annual basis. Friday could be a trigger for markets that are increasingly focused on the timing and pace of the Fed’s interest rate cuts, with July’s US personal consumption expenditure (PCE) inflation expected to hold steady at 0, 2% monthly. Annual PCE inflation is actually expected to rise to 2.7% from 2.6%, but investors are confident that inflation has made enough progress toward the Fed’s 2% target that it will be considered “close enough ” to keep the path open to a first rate cut on September 18.

Dow Jones News

Caterpillar ( CAT ) is moving higher on Monday in sharp contrast to the broader market. The NASDAQ and S&P 500 sold off on Monday morning, while Caterpillar and a host of other Dow stocks gained ground. The Dow actually hit another all-time high at 41,420 months after the Dow’s decent performance last week.

Read more: Caterpillar helps Dow Jones rally at start of eventful week

Dow Jones Price Forecast

Intraday price action is taking a bit of a loss on a generally quiet Monday. Offers managed to reach a new all-time high above 41,400.00 to start the new week of trading, but the overall day is still tilted to the downside as bulls try to run on empty.

The Dow Jones went on an impressive 7.9% winning streak since the first week of August, rising from a low of 38,382.90 to hit a new all-time high of 41,419.65. Despite the impressive run that leaned entirely on the bullish side, momentum is set to quickly drain from the index as bidders run out of steam. The Dow Jones is poised for a bearish pullback to the 50-day exponential moving average (EMA) at 39,946.29.

Dow Jones Daily Chart