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US stock index futures point to a flat open on Wall Street
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Tesla (TSLA.US) gains as operations at Shanghai factory are resumed
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L Brands (LB.US) may sell Victoria’s Secret brand to private equity firm
US stock index futures hint at a flat opening of today’s session on Wall Street. Technological Nasdaq is performing slightly better than S&P 500 or Dow Jones in pre-market trade. Traders should expect coronavirus news to be a main driver of today’s moves. Among companies making big moves ahead of session open one can find Tesla and L Brands.
Nasdaq (US100) futures signalling a small bullish gap at the opening of today’s session. The index remains close to all-time highs but has trade sideways in a tight range recently. The range is being limited by 9400 pts handle (support) and 50-hour moving average (resistance). These two levels could be on watch throughout today’s session. Source: xStation5
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Create account Try a demo Download mobile app Download mobile appSome news on Tesla (TSLA.US) surfaced recently. Peter Altmaier, German economy minister, said that Tesla may receive subsidies from the German government for its planned factory near Berlin in case it meets certain preconditions. Those include setting up a R&D department in Germany and meeting sustainability and performance standards for batteries. However, the stock is trading 8% higher in pre-market on other news - it was reported that Gigafactory in Shanghai has resumed operations.
NIO (NIO.US), the Chinese EV manufacturer, announced it has delivered 1598 vehicles in January, marking a 11.5% YoY decline. The company said that coronavirus negatively impacted sales figures. NIO expects production and deliveries to underperform in February as well.
Share price of NIO (NIO.US) took a steep dive in March 2019 and continued to decline until the end of September 2019. The company was recovering in Q4 2019 and January 2019. However, a head and shoulders pattern can be spotted on the chart with 23.6% Fibo level of the aforementioned downward move serving as a neckline. Target of this pattern can be found in the $2.50 area. Source: xStation5
Allergan (AGN.US) released earnings report for Q4 2019 ahead of the session open. Pharmaceutical company generated sales of $4.35 billion, marking a 5.8% beat and 6.6% YoY increase. EPS of $5.22 was 13.5% higher than expected and 21.7% higher than a year ago. The company managed to increase sales of all of its top drugs with Restasis being the only exception (-4.1% YoY). The company expects AbbVie merger to be closed around the end of the Q1 2020.
L Brands (LB.US) is said to be nearing a deal to sell Victoria’s Secret brand to Sycamore, the US private equity firm. CNBC reports that the deal could be announced as soon as this week. Terms of the deal are still being negotiated. Shares of L Brands rise over 7% in pre-session trading.
L Brands (LB.US) failed to break above the resistance zone at $24.65 last week. However, the stock is set to open 7% higher today, thanks to news of Victoria’s Secret deal. This indicates an opening above the aforementioned zone. Should it be so the stock would find itself between two important price zones - $24.65 (support) and $28.00 (resistance). Source: xStation5
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