- Wall Street opens higher after volatile weekend
- Indices trade calmly following the chaotic but short-lived mutiny in Russia
Wall Street opens slightly higher today. The SP500 (US500) index gains 0.2% to 4400 points and Nasdaq 100 Index (US100) gains 0.6% to 15150 points, while the dollar weakened.
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Create account Try a demo Download mobile app Download mobile app- Goldman Sachs (GS.US) has started cutting managing directors globally, reflecting a reduction in deals and an overall slump in the market.
- Tesla Inc. (TSLA.US) shares declined as the automaker was downgraded by Goldman Sachs.
- IBM (IBM.US) announced its acquisition of software company Apptio for $4.6 billion.
After the volatile weekend there are growing concerns about Vladimir Putin's grip on power following a short-lived mutiny in Russia. Traders, however, remained calm, and even Russian currency - ruble managed to recover its losses. Defense Minister Sergei Shoigu's visit to troops in Ukraine was seen as an attempt to strengthen his position.
The Bank for International Settlements (BIS) issued a warning that the global hiking cycle is entering a challenging phase, indicating that interest rates may need to remain higher for a longer period. According to the Bloomberg surveys the majority of participants predict that the US yield curve will remain inverted into the next year and expect at least two more rate hikes by the Federal Reserve.
The US500 index is currently trading at 4380 points, representing a 0.14% decrease. The index initially opened with gains but later experienced a reversal, resulting in losses. It faced rejection from the resistance line at 4500 and has retreated to trade around the next resistance level between 4380-4400 points. If the index breaks below this zone, it could potentially trigger a further sell-off, potentially leading to a decline towards the 4300 range. Traders and investors should closely monitor the price action around these key levels for potential market movements and adjust their strategies accordingly.
Company News:
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Brinker International (EAT.US) slides 0.1% after the Chili’s owner was initiated with an underweight rating at Wells Fargo, which said a slowing macro environment could hamper the company’s turnaround progress.
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Meta Platforms (META.US) edges 0.2% higher as UBS hikes its price target on the social media company, saying that generative AI will provide the next leg to shares.
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Moderna (MRNA.US) rises as much as 1.9%, after the vaccine maker was upgraded to buy from neutral at UBS on its valuation and progress with its pipeline beyond Covid.
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Palo Alto Networks (PANW.US) gains 1.3% as Morgan Stanley raises its price target on the infrastructure software company to $302 from $255.
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SL Green Realty Corp. (SLG.US) gains 16.0% after it sold a 49.9% interest in a midtown Manhattan office building to a US affiliate of Tokyo-based Mori Trust at a gross asset valuation of $2 billion.
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