US OPEN: Wall Street lower despite upbeat data

• US ISM Manufacturing PMI above expectations
• Merck (MRK.US) reveals positive data in trial of COVID-19 antiviral drug
• Coty (COTY.US) to sell 9% stake in Wella to majority owner KKR (KKR.US) 

US indices launched today’s session higher, however moods worsened after economic data release at 3:00 PM BST which showed that ISM Manufacturing PMI topped analysts' expectations and consumer sentiment was revised higher to 72.8 in September. Earlier in the session personal spending beat market expectations, while the IHS Markit US Manufacturing PMI was revised higher to 60.7 in September from a preliminary of 60.5 but below 61.1 in August. Meanwhile PCE prices continued to point to high inflationary pressure. On the political front, House Democrats delayed plans to vote on a $1 trillion infrastructure bill as no deal has been reached yet. Also, both the Senate and the House passed a short-term appropriations bill that would keep the government running through December 3rd.

US100 broke below major support at 14,710 pts which is marked with the lower limit of the 1:1 structure and lower bound of the wedge formation. If current sentiment prevails, then the next target for sellers is located around 14,450 pts. Only if buyers manage to break above the aforementioned area at 14,710 pts and stay there, an upward move towards 14,900 pts may be on the cards. Source: xStation5

Companynews:

Coty (COTY.US) stock rose 2% in premarket after the beauty firm announced a deal to sell another 9% stake in its Wella beauty business to private equity firm KKR (KKR.US). Coty had sold a 60% stake in Wella to KKR last December.

Coty (COTY.US) stock launched today’s session higher and price is currently testing 50 SMA ( green line) and 200 SMA (red line). Should a break higher occur, an upward move may be extended to local resistance at $9.07 or even resistance at $10.58 which is marked with 78.6% Fibonacci retracement of the last downward wave. On the other hand, if sellers manage to halt advances, then nearest support lies at $7.80 and coincides with the lower limit of the aforementioned channel. Source: xStation5

Merck (MRK.US) stock jumped more than 7.0% in the premarket after the pharmaceutical company announced that its experimental Covid-19 drug reduces the risk of death and hospitalization by 50% in a late-stage study.

Lordstown Motors (RIDE.US) stock surged more than 6% in premarket after the company reached a deal to sell its Ohio plant to Taiwan's Foxconn for $ 230 million, with Foxconn taking over the manufacturing of Lordstown's full-sized electric pickup truck.

Zoom Video Communications (ZM.US) and Five9 (FIVN.US) withdrew from a deal worth approximately $ 15 billion. Zoom wanted to acquire the contact center operator, but the deal was rejected by Five9 shareholders. Both companies will continue the collaboration that existed prior to the proposed transaction.