US OPEN: Wall Street rebounds as hope returns

• US stocks open higher
• TESLA  (TSLA.US) is cutting wages
• Pinterest (PINS.US) soared 14% in extended trading

 

Yesterday’s risk rally saw a notable turnaround late in the US session, consequently raising concerns over the recent upside. Today US indices opened higher attempting to rebound, as investors hope that the worst of the coroanvirus pandemic will soon be past. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, advised the number of fatalities in the US is now lower than initially anticipated, and that the situation should improve soon. According to analysts from Pantheon Macroeconomics the eighth straight day of declines in the rate of new infection growth was a sign that the "curve is bending." However, death toll in the country increased by 1,800 yesterday, the most since the pandemic began. Therefore the trading session is expected to remain volatile as uncertainty remains on the markets and any new headlines regarding the spread of coronavirus may trigger violent price action. Traders  await FOMC minutes from the Fed emergency cut on March 15th, for more clues on the economic outlook and monetary tools available to help the economy.

S&P500 (US500) – attempts to break out from the consolidation channel. In case the current sentiment prevails, index may move towards the next resistance located at 2904 pts. Source:xStation5.

 

Pinterest (PINS.US) - stock price rose 14% in extended trading after the company released preliminary results. Social Media Company expects revenues from $ 269 million to $ 272 million in the first quarter. The company expects the number of active monthly users in the first quarter to range between 365 million and 367 million. Company announced it ended the first quarter with a strong balance sheet of $ 1.7 billion in cash, cash equivalents and transferable securities, without any financial debt. However coronavirus pandemic had an impact on global advertising revenue therefore the company withdrew its guidelines for 2020.

Pinterest (PINS.US) - the price is testing the local resistance level at $16.14 per share. If buyers fail to break above, then the share price may fall towards local support at $13.28 per share. However should a break above the  occur, upward move towards $17.40 per may accelerate. Source:xStation5

 

TESLA  (TSLA.US) - will reduce all salaried employees’ pay and will furlough hourly workers after health orders to curb coronavirus have forced the company to suspend production. The pay reductions are expected to be in place until the end of the second quarter. The company expects to resume production at its Fremont, California car plant on May 4. The new pay cuts follow Tesla’s first-quarter vehicle production and deliveries report, which was better then expected.

TESLA  (TSLA.US) is currently testing major resistance level at $556.98 per share. As long as the price sits below it, the continuation of a downward trend looks more probable. On the other hand, breaking above the $556.98 per share resistance level  may lead to a bigger upward correction towards $612.25 per share, which is also being strengthened by 200 MA (redline).The support is located at $346.98 per share.  Source:xStation5

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