US OPEN: Bullish opening of Monday session on Wall Street, Boeing lower after job cuts

• Wall Street opens lower on Monday.
• Boeing Co. (BA.US) shares dropped 1.6% in after-hours trading following the announcement of significant job cuts and production delays.
• Cryptocurrency-related stocks rallied in US premarket trading, buoyed by gains in Bitcoin

US equities are set for a higher open, with the  Nasdaq 100 leading gains, up 0.96%. The S&P 500 is higher by 0.58% with Russell 2000 0.07% higher.  In Europe, most indexes are in the green. Spanish SPA35 and Italian ITA40 are the best performing and gain 0.84% and 0.6% respectively. German DAX 40 is over 0.3% higher. French CAC40 is losing 0.1% of its value.

Boeing Co. shares dropped 1.6% in after-hours trading following the announcement of significant job cuts and production delays. CEO Kelly Ortberg revealed plans to reduce the company's workforce by approximately 17,000 jobs, or 10% of its total staff, including executives and managers. Caterpillar Inc. shares fell 2.5% in premarket trading after Morgan Stanley downgraded the heavy equipment manufacturer to Underweight from Equal weight.

Current volatility observed on Wall Street. Source: xStation 

S&P 500 index companies by sector. Source: Bloomberg Financial LP

The Nasdaq-100 index, represented by the US100 contract, is trading above the support at the 78.6% Fibonacci retracement for 4th consecutive trading day. For upward momentum to continue, the resistance at 20638 must be broken. It is the level of weekly close all-time-high. The key level for bears to gain momentum would first be 78.6% Fibonacci retracement, followed by mid-August highs at 19,917.81.The index has been in an uptrend since late July, forming higher highs and higher lows, but is now facing resistance near weekly high. Both 78.6% Fibo and mid-August highs act as strong support. A break of these levels could quickly bring the 100-day and 50-day SMAs into play. Currently, the RSI is slowly showing bullish divergence, with confirmation above 65.6 level. The MACD has signaled a buy, and its tightness suggests potential for high volatility. Additionally, the 50-day SMA is approaching the 100-day SMA, and a bearish crossover could trigger downside momentum. Source: xStation 5

News:

• Boeing Co. (BA.US) shares dropped 2.4% following the announcement of significant job cuts and production delays. CEO Kelly Ortberg revealed plans to reduce the company's workforce by approximately 17,000 jobs, or 10% of its total staff, including executives and managers. The aerospace giant is grappling with ongoing challenges, including a month-long strike involving 33,000 workers in Washington and Oregon, which has halted production of key aircraft models. Boeing also announced a one-year delay in the first delivery of its 777X commercial jetliner and warned of "substantial" new losses in its defense division. These measures come as the company attempts to recover from recent safety concerns and align its operations with current financial realities.
• Caterpillar Inc. (CAT.US) shares fell 2.5% after Morgan Stanley downgraded the heavy equipment manufacturer to Underweight from Equal weight. Analyst Angel Castillo cited increasing evidence of a potential de-stocking downturn for U.S. construction equipment and warned of rising risks of downward earnings revisions. Morgan Stanley reduced its price target for Caterpillar to $332 per share from $349, maintaining a 16x multiple but applying it to 2025 earnings estimates instead of 2024. The downgrade reflects growing caution about U.S. non-residential construction activity and its potential impact on Caterpillar's performance.
• Amgen Inc. (AMGN.US) was downgraded by Truist Financial from "buy" to "hold" on Monday, October 14. Despite the downgrade, analysts raised their price target for the medical research company to $333.00 from $320.00, suggesting a potential 1.42% upside from the current price. This adjustment in rating reflects a more cautious stance on Amgen's near-term prospects while still acknowledging some growth potential.
• Cryptocurrency-related stocks rallied in US premarket trading, buoyed by gains in Bitcoin as traders speculated that Beijing's latest stimulus efforts would drive investors towards crypto rather than Chinese stocks. Bitcoin reached its highest level in two weeks, triggering a surge in crypto-linked equities. MicroStrategy (MSTR.US) led the gains, climbing around 6.5% to $224.68, while Coinbase (COIN.US) advanced 4.5% to $184.29. Crypto mining companies also saw significant increases, with Bitfarms (BITF.US) up 3.8%, Riot Platforms (RIOT.US) rising 4.6%, Marathon Digital (MARA.US) gaining 5% to $16.93, and Hut 8 (HUT.US) increasing by 4.5% to $12.30. The broader Nasdaq 100 futures index was up 0.33%, reflecting the positive sentiment in the tech and crypto sectors. Bitcoin itself surged over 3% in the past 24 hours, trading above $64,500.

Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP