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Rotation out of tech and into value slows down
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US100 bounces off the 200-hour moving average
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Lyft reported small than expected net loss
Tuesday marked another day of heavy rotation out of tech stocks into value stock on Wall Street - Dow Jones gained 0.90% while Nasdaq slipped 1.37%. However, it looks like rotation trade is slowing down with all major US indices opening higher today and Nasdaq gaining 0.9% at the launch of today's trading.
The United States celebrates Veteran's Day today and as a result bond markets are closed. Stock market session on Wall Street will be held as usual. However, traders should keep in mind that liquidity conditions may be a bit thinner.
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Ongoing tech sell-off seems to be slowing down. US100 found support at 200-hour moving average (purple line, 11,600 pts area). Yesterday's low coincided with a 61.8% retracement of a recent upward impulse (orange circle). Near-term resistance to watch can be found at the 38.2% retracement in the 11,850 pts area. Source: xStation5
Company News
Lyft (LYFT.US) reported Q3 results yesterday after the Wall Street session closed. US ride-hailing company generated $499.7 million in revenue during the quarter while net loss stood at $239.7 million. However, market consensus pointed to a net loss of $250 million. Revenue was almost 50% lower year-over-year. Better-than-expected earnings can be ascribed to cost cutting measures implemented by the company. Lyft CFO repeated that company plans to be profitable by the end of 2021.
Alibaba (BABA.US) is trading lower today, echoing poor performance of Chinese tech during the Asian trading. Shares of Chinese tech companies have been experiencing a sell-off for the past 2 days after Beijing proposed regulation that aims to get rid of monopolies in the internet industry. News overshadowed solid data from Alibaba's 'Singles Day' that has attracted more than $70 billion in orders so far.
Albert Bourla, CEO of Pfizer (PFE.DE) sold 62% of his stake in the company on the day the vaccine breakthrough was announced.
Aurora Cannabis (ACB.US) said that it plans to raise $125 million via secondary stock offering. Each share will be priced at $7.50 in the offering and buyers will receive an option to buy another share at $9.00 during the 40-month period.
Nasdaq movers at the beginning of Wall Street session. Source: Bloomberg
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