Summary:
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US indices gain with focus still on trade
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US500 gaps higher over the weekend
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Uber to begin sharply lower after London license lost
The start of a holiday-shortened week for US stocks looks set to get off on the front foot with all the major benchmarks set to start above where they ended on Friday. With the US celebrating Thanksgiving on Thursday there could be reduced trading volumes from across the pond heading into the second part of the week and this is something that traders should be aware of.
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US stocks are trading around 10 points above Friday’s closing level of 3109 ahead of this afternoon’s open. The market is only a little more than this shy of its all-time high made just last week at 3132. Source: xStation
In terms of what is driving the market it remains pretty clear that trade continues to dominate with the recent gains attributed to some positive developments on the Intellectual Property theft front over the weekend (read more here). In the last hour the markets have moved off their lowest levels of the day, aided by reports in the Global Times that the US and China have basically reached a broad consensus on a phase one deal.
For the second time the transport agency in London (TFL) has stripped Uber of its license to operate in the city in a move that has caused some sizable selling in the stock during pre-market trade. TFL said that it has discovered over 14,000 incidents in late 2018 and early 2019 with unauthorised drivers which put “passenger safety and security at risk.” The ride-hailing app has 3.5M riders and 45,000 licensed drivers in London and the ruling has once more brought unwanted scrutiny on the firm. Uber has 21 days to lodge an appeal and during this process it can continue to operate.
Uber shares have fallen as much as 5% in pre-market trade and could be set for an ugly open. The stock had been looking to recover from its lowest level on record around 25.60 but the news that it has lost its license in London comes as a big blow. Shares still languish well below their IPO price of $45 from back in May when the firm went public. Source: xStation
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