- US indices launched today's cash trading lower
- US30 tests major support
- JD.com (JD.US) plunges on China Covid concerns
Three major Wall Street indices launched today's session slightly lower as a worsening Covid-19 situation in China and more lockdowns worsened an already softened risk appetite. Also investors remain cautious ahead of the FOMC minutes release on Wednesday which may provide more hints regarding FED future rate hike path. The US bond market will be closed on Thursday for the Thanksgiving holiday and will close early on Friday, therefore liquidity conditions may be thinner.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
US30 hovers near major support at 33700 pts, which coincides with 61.8% Fibonacci retracement of the downward correction launched in January 2022. As long as buyers manage to keep the index above the aforementioned level, another upward impulse towards next resistance at 34330 pts may be launched. On the other hand, should the break lower occur, downward move may deepen towards local support at 32620 pts. Source: xStation5
Company news:
Carvana (CVNA.US) stock plunged over 5.0% in the premarket after WSJ reported that the online used car retailer could run out of cash within a year. Company announced on Friday another round of job cuts that will impact about 1,500 employees, or 8% of its workforce.
Disney (DIS.US) stock rose 10.0% before the opening bell following news that a former Chairman and CEO Bob Iger is returning as chief executive.
Coinbase Global (COIN.US) stock dropped over 6.0% in premarket amid controversy regarding the largest cryptocurrency trust Grayscale.
Taiwan Semiconductor Manufacturing (TSM.US) ADR lost nearly 2.0% in premarket as investors remain uncertain about the outcome of the recent meeting between the company's CEO and Chinese President Xi Jinping in Thailand.
Other Chinese stocks listed in the US are also facing heavy selling pressure after three Covid-related deaths were reported in Beijing over the weekend, the first reported since May. Alibaba (BABA.US) dropped over 3.0% in premarket trading, JD.com (JD.US) fell more than 5.0%, Baidu (BIDU.US) and Pinduoduo (PDD.US) both plunged nearly 3.0% in premarket.
JD.com (JD.US) pulled back sharply on Friday as buyers failed to break above 200 SMA (red line). Currently price is testing major support at $53.00, which is marked with previous price reactions and 61.8% Fibonacci retracement of the upward wave which started in November 2018. Should break lower occur, downward move may deepen towards local resistance at $48.45. Source: xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
