We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Bearish
GBP/USD
Mixed
USD/JPY
Bullish
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Notice

DailyFX PLUS Content Now Available Freely to all DailyFX Users

Real Time News
  • #USDCHF pivot points (daily) – S3: 0.9798, S2: 0.9858, S1: 0.9894, R1: 0.9953, R2: 0.9976, R3: 1.0036 - https://www.dailyfx.com/pivot-points?ref=SubNav?utm_source=Twitter&utm_medium=DFXGeneric&utm_campaign=twr
  • Silver, Gold, and $EURUSD thoughts from today's webinar - https://www.dailyfx.com/forex/video/live_events/2019/09/16/silver-gold-eurusd-forecast-JWweb-116.html
  • $EURUSD: Prices soon ripped-higher until resistance showed at a confluent area on the chart, as taken from the prior swing-low at 1.1109 that ran into a bearish trendline projection. Get your technical analysis from @JStanleyFX here: https://t.co/KlnCP4dpQ9 https://t.co/vu8AvJFvfa
  • 🇯🇵 JPY Trade Balance (AUG), Actual: N/A Expected: -¥346.3b Previous: -¥249.6b https://www.dailyfx.com/economic-calendar#2019-09-17
  • With increasing volatility in weather patterns, how might storms, hurricanes and floods rattle the supply chain for petroleum-based products and impact crude #oil prices? Find out from @ZabelinDimitri here: https://t.co/e91RRyBQ3z https://t.co/QJdJu2lNHf
  • The market for negative-yielding bonds has exploded in 2019 to a whopping $14 trillion against the backdrop of deteriorating global growth prospects https://t.co/kHqdF1ExbM
  • $ES_F $TNX https://t.co/AebApRQmlQ
  • 🛢 #CrudeOil and volatility analysis following Monday’s surge in petrol prices - via @DailyFX ➡️ Link: https://www.dailyfx.com/forex/technical/home/analysis/usoil/2019/09/16/crude-oil-price-spike-to-drag-volatility-higher-stocks-lower.html $USO $OVX #WTI #OOTT https://t.co/KiYJD4tTFN
  • How can traders avoid #FOMOintrading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/zXJ0j1YeAn https://t.co/xsAlM3Cqon
  • 🇳🇿 NZD Current Account Gross Domestic Product Ratio YTD (2Q), Actual: N/A Expected: -3.3% Previous: -3.6% https://www.dailyfx.com/economic-calendar#2019-09-17
Dow Jones Outlook: Index Eyes Next Brexit Vote, Boeing Developments

Dow Jones Outlook: Index Eyes Next Brexit Vote, Boeing Developments

2019-03-12 21:30:00
Peter Hanks, Junior Analyst
Share:

Dow Jones Outlook Talking Points:

  • The Dow Jones will look to the next Brexit vote which could see the UK fall out of the European Union without a deal
  • Boeing developments will further influence the index as the corporate-giant wrestles safety concerns
  • Looking to take your trading to the next level? Check out our free Advanced Trading Guides.

Dow Jones Outlook: Index Eyes Brexit Vote, Boeing Developments

As the Dow Jones heads into Wednesday trading, the index will likely take its cues from Brexit proceedings and the developing situation with the Industrial Average’s largest member, Boeing. Tuesday saw UK MPs overwhelmingly vote down Prime Minister Theresa May’s revised Brexit deal. While the outcome was largely expected, the result delays a decision and prolongs uncertainty for European equities.

In the unlikely event the vote to exit the Union without a deal is passed tomorrow, it would likely deliver a shock to global equities. Given their proximity and degree of interconnectedness, European and North American equities could experience high levels of volatility on such an outcome.

See how IG clients are positioned on the Dow Jones, S&P 500 and the US Dollar with our free IG Client Sentiment Data.

As for domestic concerns, traders will continue to watch Boeing (BA) and developments from the investigations by the Federal Aviation Administration (FAA) and the company itself. Boeing has dragged the index lower since Monday when a Boeing 737 Max 8 crashed, marking the second such incident in the last five months. As one of the newer models offered by Boeing, the incidents have triggered concerns regarding the plane’s safety. Boeing shares reacted accordingly and suffered their worst two-day loss since 2001.

Dow Jones Price Chart: Daily Time Frame (January 2019 – March 2019) (Chart 1)

dow jones daily price chart and boeing price chart

Dow Jones Price Chart overlaid with Boeing (BA) in blue

While the ongoing Boeing situation is not necessarily significant from a macroeconomic perspective, the corporation is afforded significant weight in the Dow Jones Industrial Average. Further, it is the largest US manufacturer. Given the weight commanded by Boeing, it can exert considerable influence over the index.

Dow Jones Component Weightings (Chart 2)

dow jones weighting chart

As of Tuesday’s open, Boeing accounted for 10.57% of the Dow. Should the FAA follow other aviation governing bodies in Europe, and parts of Asia and ground the model, Boeing could continue to drag the Dow lower. Since Monday, the Dow has been the worst performing major US index.

Dow Jones Price Chart: 3-Minute Time Frame (March 11-12, 2019) (Chart 3)

Dow Jones, nasdaq, russell, S&P 500 price chart

The Industrial Average will also await US durable goods orders from January. With durable goods categorized as longer-lasting products, the manufacturing and industrial components of the index may experience greater sensitivity to the data print than other sectors.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more: Stock Market Fund Flows: S&P 500 Retreat Sparks Demand for Defensives

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.

provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.