- US stocks opened lower
- Weekly claims rose last week
- Shopify (SHOP.US) stock tumbles following disappointing quarterly results
US indices launched today's session lower, erasing some of Wednesday's gains after the Federal Reserve raised interest rates by a widely expected half-percentage point but nixed expectations for even larger rate hikes ahead. The Dow Jones lost 1.20%, while S&P 500 and Nasdaq Composite fell 1.6% and 2.3% respectively. Meanwhile the 10-year Treasury yield returned above 3%, which may indicate that investors are still concerned about the central bank’s ability to slow inflation without triggering a recession. On the data front, nonfarm labor productivity in the US slumped an annualized 7.5% in Q1, the most since 1947. US weekly jobless claims increased by 19k to 200k from a revised 181k in the previous period and above analysts’ estimates of 182k.
US100 failed to break above major resistance at 13560 pts and give back some of the sharp gains seen in the previous session. As long as the price sits below this level, another downward impulse towards psychological support at 13000 pts could be launched. Source: xStation5
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Shopify (SHOP.US) stock plunged over 14.0% in premarket trading after the e-commerce platform earned 20 cents per share, well below analysts’ estimates of 64 cents. Company also provided disappointing guidance as lockdown-inspired growth slowed amid the absence of new consumer stimulus money. Shopify plans to acquire U.S.-based logistics firm Deliverr for $2.1 billion, to help mitigate supply chain issues.
Shopify (SHOP.US) stock fell more than 75.0% from its November 2021 high. Recent quarterly figures provided more fuel for market bears and downward move may accelerate towards key support at $314.00 where lows from March 2020 are located. Source: xStation5
Etsy (ETSY.US) stock sinked over 12% as weak guidance and news that sellers are leaving the platform due to rising fees overshadowed solid quarterly results.
Twitter (TWTR.US) stock rose 1.5% before the opening bell after Elon Musk provided more details regarding the $7.2 billion takeover deal. According to SEC filing, Oracle co-founder Larry Ellison and investor Ron Baron are among those committing funds. Musk is also expected to act as a temporary CEO of Twitter for a few months after takeover is completed, according to CNBC.
EBay (EBAY.US) stock dropped nearly 8.0% in premarket despite the e-commerce company revenue figures beat market estimates. However investors dumped the stock following disappointing revenue forecasts. Similar to its competitors, eBay lowered its expectations due to rising inflation and clients returning to pre-pandemic shopping habits.
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