- US indices launched today's cash trading lower
- NFP above expectations
- SVB Financial (SIVB.US) extends sell-off
- Gap (GPS.US) stock plunges on weak financial results and disappointing guidance
Three major Wall Street indices launched today's session lower, with Dow Jones losing 0.20%, while S&P500 and Nasdaq fell by 0.50% and 0.70% respectively as market digest mixed NFP report. Payrolls jumped to 311k in February, well above analysts estimates of 205k. On the other hand unemployment rate unexpectedly increased to 3.6% while wage inflation cooled, easing some worries that a still-tight labor market will prompt sharper interest rate hikes. Still worries of condition of US banking sectors weighs on sentiment. Tech lender SVB Financial Group tried on Thursday to reassure its venture capital clients their money was safe after a capital raise, leading to a bank shares' selloff across the globe. Sell-off depend today as CNBC reported the company sought a buyer after being unable to raise capital in a Thursday offering. Nevertheless analysts do not consider that SVB Financial will to spread to other banks.
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Create account Try a demo Download mobile app Download mobile app311K jobs were created in February, significantly lower compared to last month's downward revised 504K. Source: Bloomberg via ZeroHedge
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
US500 fell sharply early in the morning, however buyers managed to halt declines around earlier broken long-term downward trendline and pushed the index towards local resistance at 3920 pts after NFP release. Nevertheless as long as price sits below psychological 4000 pts level, main sentiment remains bearish. Source: xStation5
Company news:
SVB Financial (SIVB.US) stock plunged over 60.0% in premarket extending the recent downward move. Yesterday the company announced a plan to raise more than $2 billion in capital to help offset losses on bond sales. Due to massive moves trading of SVB stock was eventually halted.
DocuSign (DOCU.US) shares fell over 13.0% despite the electronic signature platform posted better than expected quarterly figures. However CFO Cynthia Gaylor will leave the company later this year, while JPMorgan downgraded stock to underweight from neutral due to weakening demand trends, potential competition from Microsoft and Gaylor’s departure.
Oracle (ORCL.US) stock fell nearly 5.0% before the opening bell after the software company posted weak revenue figures for its latest quarter. Oracle recorded sales of $12.4 billion, below Refinitiv expectations of $12.42 billion.
Gap (GPS.US) stock sinked more than 11.0% in off-hours trading after the apparel retailer issued a downbeat quarterly report, which pointed to declining sales and disappointing financial revenue outlook.
Gap (GPS.US) stock launched today's session with a massive bearish price gap and is trading below key support at $11.00 which is marked with lower limit of the 1:1 structure and 200 SMA (red line). As long as price sits below the aforementioned level, sell-off may deepen towards September 2022 lows around $7.90. Source: xStation5
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