- US stocks opened lower
- Concerns over pandemic situation in China weighs on market sentiment
- Twitter (TWTR.US) reportedly nearing deal to sell itself to Elon Musk
- Alibaba (BABA.US) stock hit by China covid outbreak.
US indices opened today's session lower, extending last week's losses amid concerns regarding Covid case spikes in China and potential supply chain problems which may push inflation even higher and cause global economic slowdown. In turn this may force FED to take more decisive actions and lift interest higher at a faster pace. On the corporate side, Twitter shares climbed on reports the company is in advanced talks to sell itself to Elon Musk. Coca-Cola shares rose about 2% after the company reported upbeat quarterly results. The Dow Jones lost more than 250 points and both the S&P 500 and the Nasdaq were down over 0.5% each.
US2000 fell sharply in recent days amid broad risk-off sentiment and is currently testing local support at 1923 pts which is marked with lower limit of the 1:1 structure and previous price reactions. Should a decisive break lower occur, the next target for sellers is located 1884,0 pts where February lows are located. Source: xStation5
Company news:
Alibaba (BABA.US) ADR dropped more than 3.6% in premarket amid worries that rising number of new covid cases in second biggest economy will impact China-based companies. JD.com (JD.US) and Baidu (BIDU.US) shares also moved lower.
Alibaba (BABA.US) has been moving in a downtrend since November 2020. At the beginning of April buyers tested major resistance around $121.90 which coincides with upper boundary of the descending channel and upper limit of 1:1 structure. However, bullish momentum quickly faded away and bears resumed control. Stock launched today's session lower, and if current sentiment prevails downward move may accelerate towards major support at $72.80 where lows from March are located. Source: xStation5
For the same reason oil stocks took a hit. Chevron (CVX.US), ConocoPhillips (COP.US), and Marathon Oil (MPC.US) dipped 2.2%, 2.6% and 2.8% respectively
Kellogg (K.US) stock fell 1.8% after Deutsche Bank downgraded the food manufacturing company's stock to a hold due to workers’ strikes, rising inflation and supply chain disruptions.
Activision Blizzard (ATVI.US) stock fell 0.90% in pre market after the videogame maker posted weak quarterly results, partially caused by low demand for its latest "Call of Duty” title.
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