- Wall Street opened the session in weaker sentiment
- Investors expect less aggressive policy from central banks
- US JOLTS and orders data at 5 PM GMT in focus for investors
- Tesla (TSLA.US) is trying to return to upward momentum after an increase in shipments in China
Investors still see chances that central banks will want to avoid a hard landing of economies and remain cautious in further monetary tightening. At the same time, however, the overall rally is still being cooled by uncertainty in the banking sector. Most U.S. bank stocks still have not managed to recover from a series of huge losses. Currently, the market estimates that the Federal Reserve will not be able to accelerate the pace of rate hikes due to the threatened economic recovery.
However, this approach may change depending on the macro data. Markets estimate more than 50 basis points of Fed rate cuts later this year. This has been partly influenced by the Reserve Bank of Australia's (RBA) pause in the cycle and a drop in inflation expectations in Europe. US orders data and JOLTS which will tell investors more about the current condition of the economy and domestic US demand.
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Stocks from the S&P 500 index categorized by sector and industry. Size represents market capitalization. The mood in the U.S. banking sector remains mixed and somewhat dampens overall risk appetite. Source: xStation5
US500 is losing slightly at the start of the session but bulls may struggle to break above the resistance zone at 4160 points. The SMA100 average (black line) crossed the SMA200 (red line) from below signaling a bullish 'golden cross' formation. Source: xStation5
Company news:
On Sunday, Tesla (TSLA.US) announced a record number of vehicle deliveries yesterday, but the k/k sales growth was modest, despite lower car prices, which fueled investor concerns. However, today the stock is trying to bounce back on the wave of a 19% increase in deliveries in China although yesterday's results failed to beat all analysts' expectations.
Tesla (TSLA.US) shares opened today with an upward gap. The key for the bulls in the short term may be to stay above the 200-session MA200 average (blue line). The average runs around $197 per share. Source: xStation5
Butterfly Network (BFLY.US) is gaining as the company received FDA approval to produce a tool to help diagnose
abnormal lung conditions. Analysts say the company will continue to improve the devices.
Endeavor Group Holdings Inc (EDR.US), owner of the UFC mixed martial arts federation, gains because of comments from Bank of America. Analysts were positive about the pending merger with World Wrestling Entertainment (WWE.US) and pointed to possible growth in overall business.
Virgin Orbit (VORB.US) is losing out as the satellite company has failed to improve profitability in the face of rising costs and intends to declare Chapter 11 bankruptcy.
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