How would the Dow Jones Close today?

Two Major Economic data were released in the US today

1) Producer Price Index (PPI)

The PPI increased by 1.1% while the expectation was for an increase of mere 0.4%, while the core PPI which excludes volatile food and energy was up 0.2% and was as expected, but since the FED had said at its last meeting that ‘risk of downturn of economy is bigger while inflation although not showing signs of cooling down is likely to moderate over a period of time’ hence this is likely to be ignored by the Market participants over there.

2) Empire State Index

The Empire State Index put in a reading of + 0.6 from -22.2 in March, readings over 0 indicate growth while that below 0 indicate contraction. The Expectation was for -17 so it is a hefty increase beyond expectation. This data is likely to move the markets over there as the participants over there would like to believe that the worst of subprime is behind them and mild recession is likely to be the outcome.

While on the earning front Johnson & Johnson which is also a component of Dow Jones Index has reported a better than forecast earning, also it has raised it forecast for 2008 earnings.

As of writing this the Futures of Dow Jones were trading positive 60 points, looking at what happened until now closing looks likely to be in a positive territory.