Stocks to open lower as jitters remain; Trump blames the Fed (again)

Summary:

• US indices to begin in the red

• Stocks swoon ahead of the opening bell; Trump blames the Fed

• Fedex end Amazon deal; Tesla receives cease-and-desist

Tuesday’s session saw something off a recovery for US equities with the major benchmarks all chalking up sizable gains, but the big picture remains unchanged with stock still susceptible to another bout of selling. A swift drop in recent trade serves as a timely reminder of this and bulls will want to see another solid session to alleviate the fears that there’s still worse to come.

The S&P500 moved back above the 41.4% Fib retracement at 2881 earlier today but it looks like a false break for now with buyers stepping in and sending the market back lower. Source: xStation

The US President has once more taken to Twitter to attack the Fed for not cutting rates “bigger and faster”. Source: xStation 

While there’s plenty going on at the macro level and indices, it’s also worth considering individual stocks with Fedex and Tesla both in the headlines. First up Fedex has ended its relationship with Amazon as the giant ecommerce firm continues to expand into the delivery business. According to a statement, the ground delivery contract with Amazon won’t be renewed upon expiration at the end of the month and the decision looks like another step apart coming just a couple months after it  announced the Express unit wouldn’t extend an agreement to fly packages for the largest online retailer. 

After peaking at the beginning of last year shares in Fedex have been trending lower. A break below 150 would open up the possibility of further declines. Source: xStation 

Tesla is no stranger to adverse publicity and the electric carmaker is once more in the news for unwanted reasons after receiving a cease-and-desist letter over misleading statements about its Model 3’s safety rating. The main issue appears to relate to claims in a blog post last October that the US National HIghway Traffic Safety Administration (NHTSA) showed the Model 3 to have the “lowest probability of injury of all cars the safety agency has ever tested.” The NHTSA stated this is not the first time Tesla has disregarded their guidelines and that the claims may lead to consumer confusion and give Tesla and “unfair market advantage.” 

Tesla shares remain not far from recent lows after the negative reaction to their earnings release ended the recovery seen from the May low of 177.50. Source: xStation