Stock futures slip before major earnings week

DJIA futures lower 30 points today as traders and investors prepare for a deluge of earnings reports this week. American Express, Dow Inc, IBM, Johnson and Johnson, Procter and Gamble, Travelers, and Verizon are set to report earnings this week. Aside from the earnings report, traders will continue to focus on the increase in treasury rates.

The 10-year Treasury yield hit a new three years high and might continue creeping upward. If inflation numbers continue to increase in the coming report then the situation will continue unfavorable for stocks.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA index desperately maintains the position near the daily SMA 50. There was an upward attempt toward the daily SMA 200 but resulted in a bearish close. It seems the index will consolidate between the daily SMA 50 and 200 now. We think the index has higher odds for bearish continuation. The only way to cancel the bearish outlook is an upward movement above the daily SMA 200 and followed by a higher swing high.

Kimberly Clark Corp (KMB)

KMB share prices undergo a bullish correction after printing a low of $117.32. The upward movement has reached the daily SMA 50 and currently testing it. If the share prices continue moving upward then traders will observe the reaction near the $128.00 – $130.00 area. If there is a major bearish reaction then traders could consider shorting the share prices with a stop above the daily SMA 200.