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US equities fall on Monday
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US30 below the 50-hour moving average as cyclicals plunge
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Tesla (TLSA.US) faces a formal safety probe
US equity markets opened lower on Monday after disappointing data from China - another set of worrying signals from the second-largest economy. Apart from that, chaotic scenes from Afghanistan may also slightly weigh on the sentiment. Energy and financials lagged at the open while tech stocks seemed the most resilient.
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Create account Try a demo Download mobile app Download mobile appUS30 fell below the 50-hour moving average at the beginning of the week. The index is currently trading near the 35,200 pts mark - if declines continue, the area near 35,100 pts may come into play. Traders may find the 200-day moving average (orange line) just nearby. In such scenario, the moving average is worth to watch as it served as a support numerous times in the past. The Dow Jones (US30) index is under pressure today as cyclical stocks lag behind.
Company News
US auto safety regulators said they have opened a formal safety probe into Tesla’s (TSLA.US) driver assistance system Autopilot after a series of crashes. The probe covers an estimated 765,000 Tesla vehicles in the United States. Autopilot was operating in at least 3 Tesla vehicles involved in fatal US crashes since 2016.
Crypto-related stocks gained as the price of Bitcoin climbed above the $47,000 over the weekend. Coinbase (COIN.US), the cryptocurrency exchange operator advanced nearly 2% in pre-market. Shares of business analytics company MicroStrategy (MSTR.US), which has billions in bitcoin holdings on its balance sheets, rallied more than 2%.
The Honest Company (HNST.US), the maker of personal care products, was downgraded to “equal weight” from “overweight” at Morgan Stanley after disappointing second-quarter earnings released last week. Shares tanked almost 29% on Friday as investors found the results terrible indeed. On the other hand, an analyst at Guggenheim Securities has seen a plunge in the share price as an opportunity to buy the dip and upgraded the stock to “buy” from “neutral”.
Oatly (OTLY.US) gained in pre-market despite the fact that the oat milk producer reported a quarterly loss of 11 cents per share, one cent per share wider than expected. Revenue missed expectations as well. The company issued a full-year revenue that topped analysts’ estimate as sales is expected to be driven by solid demand for vegan milk alternatives from increasingly health-conscious consumers.
Oatly’s (OTLY.US) IPO took place in May 2021. After initial gains, the stock started to trade in a downward trend. Shares fell more than 40% from its peak and are now near their IPO price ($17). Today shares try to rebound. Source: xStation5
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