- US indices launched today's cash trading sharply higher
- US PPI well below expectations
- Walmart (WMT.US) stock surges on upbeat quarterly figures
Three major Wall Street indices launched today's session higher, as fresh US PPI data showed inflation rates started to fall, strengthening expectations that the Fed may slow the pace of rate hikes. Futures tied to the Dow Jones Industrial Average rose 313 points, or 0.9%. S&P 500 futures added 1.5% and Nasdaq-100 futures gained 2.5% as the producer price index jumped only 0.2% MoM in October, well below market estimates of 0.4% gain. The report also showed the PPI coming in softer than expected on a YoY basis and in its core reading. Both PPI and last week's CPI reports prompted markets to price an over 80% chance of a 50 bps hike in December.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
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US500 managed to break above major resistance at 4000 pts which now serves as support, however buyers seem to struggle to break above 200 SMA (red line). Even if break higher occurs market bulls will need to face long term downward trendline and key resistance at 4175 pts which is marked with 23.6% Fibonacci retracement of the upward wave launched in March 2020. Therefore as long as the index sits below the aforementioned level, main sentiment remains bearish. Source: xStation5
Company news:
Home Depot (HD.US) shares fell nearly 2.0% in the premarket, despite the fact the home improvement chain posted solid quarterly results, however only reaffirmed its full-year earnings forecast amid rising concerns regarding demand caused by slowing housing market.
Walmart (WMT.US) stock jumped nearly 7.0% in the premarket after the retailer posted upbeat quarterly figures and comparable store sales beat expectations. The company, which is often considered a bellwether for the overall economy, also announced a $20 billion share repurchase program.
Tencent Music (TME.US) ADR rose nearly 10.0% in premarket after the Chinese entertainment conglomerate reported better-than-expected quarterly figures partially thanks to rising numbers of paying subscribers.
Tencent Music (TME.US) launched today’s session with a massive bullish price gap, above 200 SMA (red line) which now acts as the nearest support. Nevertheless as long as price sits below key resistance at $5.40, which is marked with previous price reactions, another downward impulse towards recent lows at $3.10 may be launched. Source: xStation5
Harley-Davidson (HOG.US) stock fell 2.0% before opening bell after Jefferies analysts' initiated coverage of the motorcycle producer with an ‘underperform’ rating, saying its growth story "lacks legs."
Taiwan Semiconductor Manufacturing (TSM.US) shares jumped over 10%, Paramount Global (PARA.US) stock added 6%, Louisiana-Pacific (LPX.US) shares added 10% and Jefferies Financial Group (JEF.US) stock gained over 4.5% in premarket after Warren Buffett's Berkshire Hathaway (BRKB.US) either increased or took new positions in the four companies.
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