US OPEN: Wall Street opens lower, S&P 500 turns negative for 2020

• U.S. indices extend losses

• Jobless claims below expectations

• UnitedHealth (UNH.US) is in talks to buy online pharmacy startup

Following yesterday’s slump (in the final hours of US session), American equities opened slightly lower. Let us remind you that Nasdaq went back into a correction yesterday while S&P 500 turned negative for 2020 after today's market open. With five days to the first presidential debate, U.S. investors seem to focus on the election even more. As far as data front is concerned, U.S. jobless claims came in slightly below market expectations (870k vs expected 840k). Meanwhile U.K. Finance Minister announced a new emergency package of measures to contain unemployment, which will replace the country’s furlough scheme expiring next month. 

US500 dived in the second part of yesterday’s US session. The index found support at 3,220 pts area which gave the impression of being a short-term support. Nevertheless, US500 fell below this area after U.S. jobless claims. Comparing current sell-off to June’s slump one might notice that the 200-day moving average (orange line) played an important role. Should market sentiment deteriorate even further, investors might want to focus on that threshold. Source: xStation5

According to the Wall Street Journal, talks between electric-truck maker Nikola (NKLA.US) and several potential partners to build hydrogen-refuelling stations have stalled. Sources point out that problems began amid allegations that the company misled investors.

United Airlines (UAL.US) agreed to delay pilot furloughs until October 30, Reuters reported. Meanwhile union members are said to be voting on a broader deal which would protect about 2,850 jobs for months to come. 

UnitedHealth (UNH.US) is in advanced talks to buy online pharmacy startup DivvyDose, according to Bloomberg. The deal might be worth about $300 million, yet it has not been finalised yet. 

UnitedHealth (UNH.US) is trading slightly lower after the U.S. market open. While the $282.5 level might be regarded as a short-term support, the area at $273 remain key support level. Source: xStation5

JPMorgan Chase & Co. (JPM.US) is reportedly to pay almost $1 billion in order to resolve market manipulation investigations. The affair concerns bank’s precious-metals futures and Treasury securities desks. 

According to a managing director at investment firm CLSA, the “biggest challenge” for NVIDIA’s (NVDA.US) acquisition of Arm is getting regulatory approval from China. As the deal needs to get regulatory approval from the U.S., U.K, EU and China, Chinese government might want to avoid the “nightmare” of potential intervention by the U.S. to limit China’s access to technology. Almost every smartphone sold today uses Arm technology.