-
Major Wall Street indice opened lower
-
US500 catches a bid after session launch and breaks above 3,715 pts
-
Big Tech struggles amid expected Democrat win in Georgia run-offs
Major stock market indices from Wall Street launched today's trading lower with Nasdaq (US100) opening around 1% below yesterday's close. Small-cap Russell 2000 (US2000) is outperformer as it gains over 1%. Divergence comes after news outlets pointed out that Democrats are set to win 2 seats in the Senate run-off in Georgia, an outcome that would give them control over the Senate. In such a scenario, Democrats would have control over Congress and the White House and will be able to proceed with a big infrastructure spending plan as well as speed up antitrust cases against Big Tech.
ADP data data showed 123k jobs decline in the US employment in December has been largely overlooked by the markets. FOMC minutes release at 7:00 pm GMT also has a scope to be non-event as highlights of the December's meeting - economic projections and dot-chart - has been released along with a monetary policy decision.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Following struggles throughout the European trading, US500 caught a bid following Wall Street cash open. The index is making a break above the resistance zone at 3,715 pts at press time. The first resistance to watch can be found at 61.8% retracement of a recent drop, that is also marked with yesterday's high. In case bulls manage to break above it, upward move could extend towards 78.6% retracement near 3,745 pts. Source: xStation5
Company News
Expected win of Democrats in Georgia Senate run-offs is boosting sectors, who are seen benefiting from Democrat agenda. This includes renewable energy companies as well as stock operating in the cannabis sector. Small-caps are rallying thanks to increased odds for passage of Biden's infrastructure plan as well as bigger stimulus. On the other hand, Big Tech companies can be found among losers.
UnitedHealth (UNH.US) agreed to acquire Change Healthcare (CHNG.US) in an all-cash deal. Acquisition is valued at $25.75 per share, marking a premium of more than 40% over yesterday's closing price. Deal is valued at $7.8 billion, or around $13 billion including debt. Change Healthcare will be combined with UnitedHealth's OptumInsight unit. Acquisition is expected to close in the second half of 2021.
Carnival Cruise Line, a division of Carnival Corp (CCL.US), said that it is informing its customers that it is cancelling cruises from US homeports through March.
Big Tech companies for NYFANG index are struggling at the beginning of Wall Street session. Source: Bloomberg
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.
