-
Wall Street set to open significantly lower
-
US500 tests 2,600 pts
-
Uber and Lyft trade lower on weaker demand
Markets remain nervous after Donald Trump banned European from travelling to the United States. Travel sector is taking the biggest hit in premarket trade. On the other hand, Mallinckrodt (MKN.US) surges on Covid-19 drug hopes.
S&P 500 (US500) is trading over 20% lower against its all-time high, meaning that the index is now in bear market territory. Futures hit lower trading limit in premarket trade, what prevented more losses. However, traders should be aware that some additional pressure is likely to surface at the cash session open (1:30 pm GMT). Unless an action is taken, the index may continue to freefall with 2018 low (2350 pts area) being the nearest major support. Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appDonald Trump’s decision to ban Europeans from travelling to the United States sent a shockwave across European markets. What should not come as a surprise is the fact that airlines were among the worst impacted companies. Also one should not expect situations to look different in the United States. Airlines and travel agencies are companies suffering the biggest premarket drops. Alaska Air Group (ALK.US), American Airlines Group (AAL.US), Delta Air Lines (DAL.US), United Airlines Holdings (UAL.US) and Southwest Airlines (LUV.US) are US airlines to watch today.
Southwest Airlines (LUV.US) broke below the upward trendline earlier this month. The stock tested $42 support zone yesterday but is likely to smash through it today. In such a scenario, the next major support can be found at $36 or 15% below yesterday’s close. Source: xStation5
Mallinckrodt (MKN.US), the pharmaceutical company, is evaluating whether nitric oxide has a potential to help fighting lung issues that arise in Covid-19 patients. The company has held early talks with FDA on the matter. Share price rises over 10% in premarket trades
Ride-hailing companies Lyft (LYFT.US) and Uber Technologies (UBER.US) are trading significantly lower in premarket. Both companies suffer lower travel volumes due to coronavirus scare. Drop in demand may crush hopes of any bigger improvement in business and companies may once again fail to show profit in 2020.
Uber (UBER.US) pulled back to the support zone at $26 yesterday and threatened to break to the lowest level on the record. Bulls managed to push the stock off the daily lows yesterday but taking into account premarket’s decline, Uber is likely to open at an all-time low. As long as the coronavirus spreads, the company may remain under pressure. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
