Summary:
-
US stock markets to open lower after sizable decline
-
26700 possible support for US30
-
Nike surges toward ATH; Nvidia a buy says Goldman
Tuesday’s US session saw some sizable selling in US stock indices with the benchmarks slumping due to a combination of poor consumer data and the perceived rising risk of impeachment against president Trump (read more here). These events came not long after the shocking European survey data on Monday morning and it’s shaping up to be a bit of a testing week for stock market bulls. That said, the selling is far from panic stations for now and the coming sessions will determine whether this is just a pullback after a fairly strong rally or more worryingly for longs a double top with the peak made back in the summer.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile app
The Dow Jones index (US30 on xStation) has pulled back in recent trade with the MACD turning lower on a D1 chart. However, the zone from 26400-26700 remains key and unless the market can make a decisive break below it then the downside is limited. Source: xStation
Our latest technical overview of the S&P500 (US500 on xStation) can be viewed here.
One component of the Dow that is in the headlines today is Nike after the stock surged towards a record high in premarket trade. The athletic apparel firm posted pleasing Q1 results with earnings of $1.4B ($0.86/ share) against $1.1B ($0.67/share) a year ago. Revenue rose by 7% to $10.7B. The stock is expected to start somewhere in the region of 5% higher which would mean a new record peak.
Nike shares are called to start strongly and above the $90 mark - meaning a new all-time high for the stock. Source: xStation
Elsewhere, Goldman Sachs raised its price target on chipmaker Nvidia to $192 from $179. The stock closed Tuesday at $172.53 per share, up nearly 30% this year. Goldman likes Nvidia the best compared to some of its semiconductor peers. While the firm has a buy rating on Nvidia, it has a neutral rating on Advanced Micro Devices and a sell rating on Intel.
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.
