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US equities fall on Monday
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US30 below the 50-hour moving average as cyclicals plunge
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Tesla (TLSA.US) faces a formal safety probe
US equity markets opened lower on Monday after disappointing data from China - another set of worrying signals from the second-largest economy. Apart from that, chaotic scenes from Afghanistan may also slightly weigh on the sentiment. Energy and financials lagged at the open while tech stocks seemed the most resilient.
US30 fell below the 50-hour moving average at the beginning of the week. The index is currently trading near the 35,200 pts mark - if declines continue, the area near 35,100 pts may come into play. Traders may find the 200-day moving average (orange line) just nearby. In such scenario, the moving average is worth to watch as it served as a support numerous times in the past. The Dow Jones (US30) index is under pressure today as cyclical stocks lag behind.
Company News
US auto safety regulators said they have opened a formal safety probe into Tesla’s (TSLA.US) driver assistance system Autopilot after a series of crashes. The probe covers an estimated 765,000 Tesla vehicles in the United States. Autopilot was operating in at least 3 Tesla vehicles involved in fatal US crashes since 2016.
Crypto-related stocks gained as the price of Bitcoin climbed above the $47,000 over the weekend. Coinbase (COIN.US), the cryptocurrency exchange operator advanced nearly 2% in pre-market. Shares of business analytics company MicroStrategy (MSTR.US), which has billions in bitcoin holdings on its balance sheets, rallied more than 2%.
The Honest Company (HNST.US), the maker of personal care products, was downgraded to “equal weight” from “overweight” at Morgan Stanley after disappointing second-quarter earnings released last week. Shares tanked almost 29% on Friday as investors found the results terrible indeed. On the other hand, an analyst at Guggenheim Securities has seen a plunge in the share price as an opportunity to buy the dip and upgraded the stock to “buy” from “neutral”.
Oatly (OTLY.US) gained in pre-market despite the fact that the oat milk producer reported a quarterly loss of 11 cents per share, one cent per share wider than expected. Revenue missed expectations as well. The company issued a full-year revenue that topped analysts’ estimate as sales is expected to be driven by solid demand for vegan milk alternatives from increasingly health-conscious consumers.
Oatly’s (OTLY.US) IPO took place in May 2021. After initial gains, the stock started to trade in a downward trend. Shares fell more than 40% from its peak and are now near their IPO price ($17). Today shares try to rebound. Source: xStation5
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