US OPEN: Wall Street opens lower on taper fears

• US stock hit 4-week low
• Fears of early Fed tapering weigh on market sentiment
• Macy’s (M.US) stock surged after upbeat quarterly results

US indices launched today's session in red and reached a 4-week low as investors remain concerned that FED could introduce tapering this year, which could slow economic recovery hurt by the spread of the Covid delta variant. Yesterday FOMC Minutes showed that central bankers are taking into consideration the need of reducing stimulus this year. Meanwhile commodity stocks came under pressure due to a fall in commodity prices. Alibaba stock plunged more than 4% as the Chinese government plans further crackdown.

US500 fell sharply following the release of FOMC Minutes yesterday, however buyers managed to halt declines around 4352.5 pts which coincides with 50% Fibonacci retracement off the last upward wave. Index  is currently testing resistance at 4382.5 pts which is marked with 38.2 Fibonacci retracement  and 200 SMA (red line). As long as the price sits below it, further downward move is the base case scenario. Source: xStataion5

Macy’s (M.US) stock rose more than 3.5% in premarket after the retailer posted strong quarterly figures. Company earned $1.29 per share, well above analysts’ estimates of 19 cents. Revenue also topped market estimates. Macy’s reported upbeat comparable-store sales figures, lifted its annual sales forecast, and also announced a share buyback and the reinstatement of its dividend. 

Macy’s (M.US) stock yesterday bounced off the major support at $17.75 and launched today’s session higher after the company posted upbeat quarterly results. If current sentiment prevails, then upward move may accelerate towards major resistance at $20.40. Source: xStation5

Kohl’s (KSS.US) stock fell more than 2.5% in premarket action despite quarterly figures beat analysts' estimates. Company earned $2.48 per share, well above the $1.21 consensus estimate and raised its forecast for the year, as Americans returned to brick-and-mortar stores. 

Tapestry (TPR.US) stock fell more than 2% in premarket despite the fact that  the company posted upbeat quarterly figures. Company earned 74 cents per share slightly above market expectations of 69 cents per share. Revenue also beat expectations as a reopening of economies around the world boosted demand for luxury goods. Tapestry also reinstated its dividend.

Cisco Systems (CSCO.US) stock fell more than 1% in premarket despite good quarterly figures. Networking equipment and services company earned 84 cents per share, slightly above market projections. Revenue also topped expectations. Cisco did give a current-quarter profit forecast that fell shy of analyst forecasts, due to supply chain issues. 

Nvidia (NVDA.US) stock rose more than 1% in premarket after the graphics chipmaker posted quarterly earnings of $1.04 per share, while analysts' expected $1.01 per share while revenue also beat estimates. Company also forecast better-than-expected current-quarter revenue.