Dow Jones, the S&P 500, and Nasdaq price forecast ahead of a busy week

Wall Street’s three main indexes ended sharply higher on Friday as investors turned their eyes toward corporate earnings and ignored geopolitical turmoil and Federal Reserve tightening concerns.

Strong corporate earnings influenced the market positively, and results from many big companies provided a strong start to the first quarter of the 2022 year.

For now, 168 companies from the S&P 500 reported their earnings, and it is important to say that 77% delivered consensus-beating earnings.

Shares of Apple rose nearly 7% on Friday after reporting record sales over the holiday quarter, while U.S. data showed that consumer spending and labor cost rises were weaker than expected in December. Stephanie Roth, a senior markets economist at J.P. Morgan Private Bank, added:

The widely-watched employment cost index came in touch softer than expected, suggesting wages may start to cool some from here. Hot wage growth has been a key factor behind the Fed’s pivot, so if this trend continues, that will relieve some pressure.

The upcoming week will be busy; Alibaba, Exxon Mobil, PayPal, Starbucks, Gilead Sciences, General Motors, Activision Blizzard, Ford, Unity Software, Snap and, Amazon ​are among the companies scheduled to report quarterly results

The U.S. will also publish the monthly job report, and investors will continue to pay attention to the Federal Reserve commentaries looking for any clues.

S&P 500 up 0.77% on a weekly basis

For the week, S&P 500 (SPX) booked a 0.77% increase and closed at 4,431 points.

Data source: tradingview.com

The current resistance level stands at 4,500 points, and if the price jumps above this level, it could reach 4,600 points very soon.

Even with Friday’s jump, the S&P 500 is down 7.6% so far in 2022, and if the price falls below 4,300 points, it would be a “sell” signal, and we have the open way to 4,200 points.

DJIA up  1.34% on a weekly basis

The Dow Jones Industrial Average (DJIA) advanced 1.34% for the week and closed at 34,725 points.

Data source: tradingview.com

Even with last week’s gains, the DJIA has plunged by more than 5% so far this year, and if the price falls again below 34,000 points, it would be a strong “sell” signal.

Nasdaq Composite up 0.01% on a weekly basis

For the week, the Nasdaq Composite (COMP) booked a 0.01% increase and closed at 13,770 points.

Data source: tradingview.com

The strong support level stands at 13,000 points, and if the price falls below this level, it would be a strong “sell” signal.

Summary

Wall Street’s three main indexes ended sharply higher on Friday as investors turned their eyes toward corporate earnings and ignored geopolitical turmoil and Federal Reserve tightening concerns. Strong corporate earnings influenced the market positively, and many companies delivered consensus-beating earnings.

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