- US indices launched today's cash trading higher
- Lower yields support tech sector
- Tesla (TSLA.US) cut prices on its most expensive models
Three major Wall Street indices launched today's session higher. Dow Jones gains 0.20%, while S&P 500 and Nasdaq rose 0.25% and 0.40% respectively as the yield on benchmark 10-year Treasury note fell to 3.9%, a lowest level since the end of February. This week market attention will focus on tomorrow’s Fed Chair Powell testimony in Congress. The NFP report on Friday will also provide a clearer picture of the labor market while giving further insight into the direction of the Fed's rate path.
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Open account Try demo Download mobile app Download mobile appS&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
Despite upbeat sentiment Libor, which is the benchmark rate for lending between banks reached 5% for the first time in more than 15 years, which may be sign that inflation is sticker than expected and market participants are not only expecting higher terminal rate but also that the Fed will keep interest rates at an elevated level for a longer period of time. Source: Bloomberg
US100 bounced off sharply from the psychological 12000 pts on Friday and today buyers try to extend the recent rally. As long index sits above the aforementioned level, upward move may accelerate towards resistance at 13000 pts. Source: xStation5
Company news:
Tesla (TSLA.US) shares jumped 0.5% in premarket after the EV manufacturer lowered prices decided to lower prices on its two most expensive vehicles. Model S price will be lowered by around 4% and the more expensive Model X by around 9%. On the other hand issued a recall notice for 3,470 Model Y vehicles in the U.S due to technical issues.
Tesla (TSLA.US) stock launched today’s session slightly higher, however buyers clearly struggle to break above the psychological $200.00 mark, which coincides with the 50 SMA (green line). As long as price sits below the aforementioned level, downward correction may deepen towards the lower limit of triangle formation or even support at $173.50 which is marked with 61.8% Fibonacci retracement of the upward move started in March 2020. Source: xStation5
Apple (AAPL.US) stock added over 1.6% before the opening bell after Goldman Sachs initiated coverage of the tech giant with a 'buy' rating. Goldman analysts see a 30% upside potential due to the strength of its services business.
Lordstown Motors (RIDE.US) stock plunged nearly 2.0% in off-hours trading after posting a wider than expected quarterly loss and delivered only 3 Endurance vehicles to customers before the end of 2022. Company still has over $220 million in cash.
Vir Biotechnology (VIR.US) stock jumped nearly 5% in premarket after JPMorgan upgraded the company to overweight from neutral as it sees long-term pipeline opportunities across numerous disease indications.
Silvergate Capital (SI.US) extended last week's sell-off, falling nearly 9% in premarket as solvency concerns continue to put pressure on crypto bank.
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