US OPEN: Wall Street opens lower, pulling further back from records

• US stocks launched session lower
• Jobless claims fall to new pandemic low
• Morgan Stanley (MS.US) stock under pressure despite upbeat quarterly figures

US indices launched today's session lower following the latest batch of quarterly corporate earnings reports, with Morgan Stanley, US Bancorp and UnitedHealth all beating estimates. Meanwhile initial claims fell to a new pandemic low of 360K, in line with analysts’ expectations. Industrial production in the US increased 0.4% mom in June of 2021, below a downwardly revised 0.7% in May and market forecasts of 0.6%. Manufacturing output edged down 0.1%, as an ongoing shortage of semiconductors contributed to a decrease of 6.6% in the production of motor vehicles and parts. The Philadelphia Fed Manufacturing Index in the US fell for the third month to 21.9 in July of 2021 from 30.7 in June, the lowest since December and below market forecasts of 28. Traders will keep an eye on Powell's hearing during the day.

US500 pulled back from all-time high at 4385 pts and is currently testing an upward trendline. Should a break lower occur, then downward move may accelerate towards support at 4312 pts which is marked with lower limit of the 1:1 structure and 50 SMA (green line). Source: xStation5 

Morgan Stanley (MS.US) stock fell more than 1.5% in premarket despite the fact that the banking giant posted upbeat quarterly figures. Morgan Stanley earned $ 1.85 per share while analysts expected earnings of $ 1.65 per share. Revenue beat market estimates as well, helped by an acceleration in investment banking activity. However revenue from fixed-income trading fell 45% in the second quarter to $1.68 billion from $3.04 billion a year earlier.

Morgan Stanley (MS.US) - yesterday buyers failed to break above the upper limit of the triangle formation and stock launched today’s session lower. If current sentiment prevails downward move may accelerate towards 50 SMA (green line) which coincides with 23.6 Fibonacci retracement of the recent upward wave. Source: xStation5

Netflix (NFLX.US) shares jumped 2% in premarket after the streaming behemoth appointed Mike Verdu as vice president of game development, who previously worked for Facebook (FB.US). This move led to speculations that Netflix may add video games to its platform. Additionally UBS has increased its price target, as it expects that number of subscribers will increase in the second half of the year.

Johnson & Johnson (JNJ.US) stock fell nearly 1% in premarket as the company ordered a recall of most of its Aveeno and Neutrogena spray sunscreens. The company said it had found that samples of the products contained benzene, a chemical known to cause cancer.

General Motors (GM.US) stock fell more than1.4% in premarket after U.S. safety regulators warned owners of the car giant’s electric Chevrolet Bolt cars to park away from homes after charging because of fire risks.