US OPEN: Mixed opening of Monday’s session on Wall Street, energy companies hit with lower oil prices, Carnival skyrockets

• Wall Street has mixed open on Monday.
• Energy companies saw significant stock declines on Monday, increasing tensions in the Middle East, while airlines and cruise lines gained on cheaper oil.
• Sunrun Inc. jumped over 6% as the company is in talks to supply distributed solar power.

US equities have mixed open, with the Nasdaq 100 leading losses, down 0.33%. The Russell 2000 is leading gains 1.03% higher, while S&P 500 is flat. In Europe, most indexes are gaining today. French CAC40 and Spanish SPA35 are leading with 0.74% and 0.68% rise respectively. British UK100 and German DAX40 rise 0.3% today.

Energy companies saw significant stock declines on Monday following Israel's targeted strike on Iran, which avoided oil infrastructure and eased regional tensions. On this news airline or cruise lines are gaining. Sunrun Inc. (RUN.US) shares jumped over 6% after CEO Mary Powell revealed discussions with data center developers to supply distributed solar power. Cryptocurrency-related stocks are gaining today as Bitcoin nears $69,000.

Current volatility observed on Wall Street. Source: xStation 

The Nasdaq-100 index, represented by the US100 contract, is currently trading above the 78.6% Fibonacci retracement level after a failed downward breakdown attempt yesterday. To maintain upward momentum, the key resistance at 20,638 needs to be cleared. This level corresponds to the weekly close all-time-high and has acted as strong resistance in the previous week. There was already a try to break it today, however unsuccessful.

For bears to gain control, they must first break below the 78.6% Fibonacci retracement level, followed by the mid-August highs at 19,917.81. These levels have provided significant support during the uptrend that began in late July. A break of these support zones could lead to a test of the 100-day and 50-day SMAs.

The RSI is showing signs of bearish divergence, with lower highs and lower lows, while the MACD is also tightening, signaling likely volatility. Despite this, the 50-day SMA is widening against the 100-day SMA after a bullish crossover, which still indicates underlying bullish momentum. Source: xStation 5

News:

• Energy companies saw significant stock declines on Monday following Israel's targeted strike on Iran, which avoided oil infrastructure and eased regional tensions. Shell and BP (BP.US) shares declined, while ExxonMobil (XOM.US) and Chevron (CVX.US) fell 1.7% and 1.1% respectively in US trading. Airline stocks, including Delta (DAL.US), American Airlines (AA.US), and United Airlines, saw gains as lower oil prices could boost profitability. Markets remain focused on upcoming US economic indicators including GDP data, nonfarm payrolls, and the PCE price index. Cruise lines also gain with Carnival (CCL.US) leading with 5% rise.
• Sunrun Inc. (RUN.US) shares jumped over 6% after CEO Mary Powell revealed discussions with data center developers to supply distributed solar power. Speaking at the Dervos 2024 conference, Powell outlined potential models including utility partnerships for custom solar systems and leveraging existing community installations. The collaboration aims to address growing power demands from AI-driven data center construction, though Powell noted industry challenges in rapidly developing new infrastructure due to traditional thinking in the electricity sector.
• Core Scientific Inc. (CORZ.US) shares rose 1.7% to $13.60 after Jefferies initiated coverage with a buy rating and $19 price target. Analysts highlighted the bitcoin miner's strong positioning to capture AI demand through its substantial power supply and data center development capabilities. This showcases rising interest in cryptocurrency-related stocks, which are gaining today as Bitcoin nears $69,000. Top movers include MicroStrategy (MSTR.US) +6%, Coinbase (COIN.US) +4.7%, Terawulf (WULF.US) +12%, and Iris Energy (IREN.US) +9%.

Other news coming from individual S&P 500 index companies. Source: Bloomberg Financial LP