Stock market indices are down on Tuesday due to further military escalation between Israel and Iran, which in an extreme scenario threatens to increase oil prices and would make it harder to fight inflation, pushing back the prospect of rate cuts by the Federal Reserve. On the other hand, investors are reacting to a sharp decline in US retail sales, which could trigger changes in the Fed earlier than previously expected.
At the time of writing this entry, the Nasdaq index on the cash market is losing 0.47%, the S&P500 0.39%, and the Russell 2000 closes at 0.57%.
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US100 (D1 interval)
The Nasdaq-100 index, represented by the US100 contract, is trading today close to 0.5% lower than yesterday's close. The index continues to maintain a dynamic upward trend, illustrated by exponential moving averages (50-, 100-, and 200-day EMAs, respectively). Moreover, Bollinger Bands show that US100 is currently holding within the statistical range structure of this instrument for the last 14 sessions. From a technical perspective, the 21,000 round zone remains a significant price support, while the historical high near 22,300 points is a resistance.
Source: xStation 5
Corporate News:
Solar stocks are falling in pre-market trading after Senate Republicans released a bill that would end tax breaks for wind and solar energy earlier than for other sources. Enphase Energy, Inc. (ENPH.US), Sunrun (RUN.US) and SolarEdge Technologies (SEDG.US) are down 36%, 20% and 30%, respectively, on Wall Street before the open.
Fastly (FSLY.US) fell 1.9% after the cloud platform provider promoted Chief Product Officer Kip Compton to CEO, replacing Todd Nightingale, who resigned from the company to take a job at Arista Networks (ANET.US).
Eli Lilly (LLY.US) is acquiring Verve Therapeutics (VERV.US), a company developing innovative gene therapies for heart disease, offering shareholders up to $13.50 per share (cash + future distribution rights), sending VERV stock soaring.
- Verve shareholders will receive $10.50 per share in cash at the close of the deal.
- Additionally, each shareholder will receive a so-called contingent value right (CVR), which is the right to a potential additional payment of up to $3.00 per share if the company reaches a specified clinical milestone (the first patient receives VERVE-102 therapy in a Phase 3 study in the US within 10 years of the closing of the transaction).
- The total maximum value of the acquisition is $13.50 per share (or approximately $1.3 billion)
Verve shares are gaining nearly 77% at the beginning of today's session on Wall Street, to just over $11 per share.
Source: xStation
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