- US indices launched today's cash trading lower
- Powell speech at 5:00 pm GMT
- Chegg (CHGG.US) plunges on weak financial outlook
Three major Wall Street indices launched another session in red, with Dow Jones trading 0.30% lower, while S&P500 and Nasdaq fell 0.2% and 0.1% respectively as traders are waiting for Fed Chair Powell's speech at the Economic Club of Washington for further clues about the central bank’s tightening path. Meanwhile Fed's Kashkari warned that the recent NFP report pointed to a still tight labour market, which may prompt the US central bank to raise rates to at least 5.4% in order to contain inflation. On the data front, the US trade deficit widened to $67.4 billion in December from a downwardly revised $61 billion in November which was the lowest since September 2020.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
While markets await Powell's speech, FED swaps price in 50bp of rate cuts for the second half of 2023. Source: Bloomberg
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US2000 pulled back sharply in recent days' from local high around 2015 pts and is currently testing major support at 1960 pts, which coincides with 38.2% Fibonacci retracement of the downward wave launched in November 2021. Should break lower occur, downward move may deepen towards next key support at 1840 pts. Nevertheless as long as price sits above the aforementioned support, another upward impulse may be launched. Source: xStation5
Company news:
Chegg (CHGG.US) stock plunged 23% in premarket after the education technology company posted weak revenue outlook for 2023, citing economic uncertainties and subscriber growth worries.
Chegg (CHGG.US) stock pulled back sharply on Tuesday as buyers failed to break above 200 SMA (red line). If current sentiment prevails, price may test lows from May 2022 around $15.45. Source: xStation5
Baidu (BIDU.US) stock jumped over 13% after Chinese tech company plans to launch its own artificial intelligence chatbot that will be called “Ernie Bot” in English similar to Microsoft-backed ChatGPT.
Bed Bath & Beyond (BBBY.US) shares tumbled 45% before the opening bell after the troubled retailer announced a public offering to raise roughly $1 billion.
Hertz (HTZ1.US) shares added nearly 6.0% in premarket after the car rental firm posted better than expected quarterly results, as demand remained elevated amid surging leisure travel and constrained production from car producers.
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