Dow climbs to fresh highs following positive earnings

The Dow Jones Industrial Average (DJIA) continued its upward trajectory on Friday, reaching a new record high. This surge was primarily driven by strong Q3 earnings reports from various companies, which surpassed market expectations and bolstered investor confidence. Additionally, positive economic data, including upbeat Retail Sales and construction figures, eased recession concerns and further supported risk appetite.

The AI tech bull market also experienced a resurgence as chipmaker suppliers reported robust demand for their products. This development reversed a recent downturn in tech stocks caused by fears of a potential slowdown in the AI sector.

Within the Dow Jones components, Apple (AAPL) emerged as a standout performer, with its shares climbing over 1.5% to surpass $235 per share. This increase was fueled by analyst reports indicating a significant 20% surge in Apple iPhone sales in China. On the other hand, American Express (AXP) faced a decline of 3%, falling below $277 per share, after missing market expectations for Q3 revenues.

Looking ahead, while the Dow Jones is currently in overbought territory, the prevailing bullish sentiment and low short interest suggest that there is potential for further upward movement. However, a short-term pullback to the 50-day Exponential Moving Average (EMA) around 42,000 is not entirely ruled out.