US OPEN: Wall Street opens lower amid lockdowns fears

• Covid-19 cases and hospitalizations continue to rise in the US
• US500 approaching major support
• Microsoft (MSFT.US) stock fell over 2% despite better than expected earnings

US indices launched today's session sharply lower as investors remain concerned that the rapid spread of the COVID-19 could halt the recovering economy. Dow Jones fell 2.3%. S&P 500 lost 2% and Nasdaq 100 futures fell 1.6%. Yesterday US reported another 74,000 new  Covid-19 infections, while hospital admissions increased 50% compared to month ago at over 44,000, according to data from Covidtracking.com. Nearly half a million people in the US have contracted the virus in the last seven days, according to a Reuters tally. This has resulted in increased fears that fresh lockdowns will be reintroduced which would hamper economic recovery. On the earnings front, Gilead Sciences and Visa are due to report after the closing bell.

US500 broke below the key support at 3400 pts yesterday and today is approaching another key level of 3305 pts which is additionally strengthened by the 50 SMA (green line). If sellers manage to break below it, then another downward impulse towards 3200 pts could be launched. Source: xStation5

 

Microsoft (MSFT.US) reported quarterly earnings of $1.82 per share, well above analysts’ expectations of $1.54 per share. Revenue also beat estimates. However company's stock fell over 2% in extended trading after the company posted weaker guidance for current quarter  with a particular shortfall in its More Personal Computing unit.

Microsoft (MSFT.US) launched today’s session lower after the company reported its quarterly results. Should current sentiment prevail the downward move could be extended to the major support at $200.00. On the other hand, once buyers regain control, the resistance at $217.40 may be at risk. Source: xStation5

Boeing (BA.US) reported quarterly loss of $1.39 per share for the third quarter, smaller than the loss of $2.52 anticipated by Wall Street. Revenue  also came in above estimates. Boeing said it was targeting a workforce of 130,000 by the end of 2021, which is about 11,000 lower than the current total.

General Electric (GE.US) stock rose 4% in premarket trading after company reported quarterly profit of 6 cents per share, compared to forecasts for a loss of 4 cents per share. Revenue also topped expectations. GE said it was managing through a “difficult environment” but added that it is on track with its effort to contain costs and conserve cash.

 

Blackstone (BX.US) posted distributable earnings per share of 63 cents per share, while analysts' expected earnings of 57 cents a share. Revenue also came in above forecasts thanks to technology-related investments.

 

United Parcel Service (UPS.US) reported quarterly earnings of $2.28 per share, compared to a consensus estimate of $1.90 a share. Revenue also beat market forecasts as ongoing pandemic boosted demand for home deliveries.

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