US OPEN: Wall Street opens lower as retail sales disappoint

• US retail sales well below expectations
• Walmart (WMT.US) stock slightly lower despite upbeat quarterly figures
• Roblox (RBLX.US) shares tanked 6% after as earnings disappoint

US indices launched today's session lower amid weaker macroeconomic data. Retail sales in July declined 1.1 %, following a revised 0.7% growth in June and compared with market consensus of a 0.3% drop. The core index, which excludes autos, also posted an unexpected drop. In the afternoon all eyes will turn to Fed Powell’s speech as investors will look for further clarification on the next monetary policy steps.

US100 fell sharply following today’s data releases and is testing major support at 15000 pts which coincides with the upward trendline and 23.6 Fibonacci retracement of the last upward wave. Should a break lower occur, then the next target for bears is located at 14900 pts and is strengthened by 200 SMA (red line). Source: xStation5.

Company news:

Roblox (RBLX.US) stock plunged more than 6% after the video game platform operator posted quarterly loss of  25 cents per share, one cent a share wider than expected. Revenue also failed to beat market estimates even though its daily active users rose 8% in July from the prior month.  

Roblox (RBLX.US) stock launched today’s session with a bearish price gap and is approaching strong support at $72.55 which coincides with 78.6 Fibonacci retracement of the last upward wave. Should break lower occur, then downward move may accelerate towards next support at $64.30 where May lows are located. On the other hand, if buyers will manage to halt declines then another upward impulse towards strong resistance at $79.35 could be launched. Source: xStation5

Walmart (WMT.US) stock fell more than 1% in premarket despite the fact that the retail giant reported strong quarterly figures. Company earned $1.78 per share while analysts expected earnings of $1.57 per share. Revenue also topped market expectations and Walmart lifted its full-year guidance, however the company reported a sharp slowdown in online sales growth, a key indicator of its ability to compete with Amazon (AMZN.US).

Spirit Airlines (SAVE.US) shares dropped nearly 5.0% in premarket after the airline said the canceling of more than 2,800 flights in late July and early August cost it about $50 million.

Chipotle Mexican Grill (CMG.US) – Investment banking company Cowen added the restaurant chain’s stock to its “conviction” list, saying it was pleased with Chipotle’s second-quarter results and that the company has sales drivers in place that will sustain improvement.