US OPEN: Wall Street slides as bank sell-off resumes

• Wall Street opens slightly lower
• US100 tests 13,270 pts support zone
• Novavax jumps after announcing massive job cuts

Wall Street indices launched today's trading lower. Small-cap Russell 2000 (US2000) was top laggard, dropping 0.8% at the open, as shares of regional banks started to slide once again. Dow Jones (US30) was the top performer but it still traded around 0.2% lower at the opening. Economic calendar for the afternoon today is light with only Fed Williams scheduled to speak at 5:05 pm BST and API oil report set to be released at 9:40 pm BST. US President Biden is set to meet with congressional leaders and discuss the debt ceiling today at 9:00 pm BST.

Source: xStation5

Nasdaq-100 (US100) is pulling back after another failed attempt at breaking above the 13,350 pts resistance zone. Index is testing 13,270 pts support zone at press time. A point to note is that this zone also marks the neckline of a double top pattern and a break below may trigger a decline with a textbook range of around 100-110 points. In Such a scenario, a 13,170 pts swing area could become the next target for bulls.

Company News

PayPal (PYPL.US) reported Q1 2023 earnings after the Wall Street session close yesterday. The US company reported a 9.8% YoY jump in total payment value, to $354.51 billion (exp. $349.54 billion). Net revenue was 8.6% YoY higher at $7.04 billion (exp. $6.98 billion) while adjusted EPS came in at $1.17 (exp. $1.10). Number of active customer accounts grew 0.9% YoY to 433 million (exp. 437.6 million) and the company processed 5.84 billion payment transactions during the quarter, or 13% YoY higher, (5.75 billion). Company expects full-year adjusted EPS to reach around $4.95 (exp. $4.88) and buybacks to amount to around $4 billion.

Boeing (BA.US) received an order for 300 737-MAX-10 planes from UK carrier Ryanair. Order is for 150 aircraft deliveries with an option for 150 more. Deal was not yet confirmed by either company but is estimated to be worth $40 billion at list prices.

PayPal (PYPL.US) plunges in spite of reporting better-than-expected Q1 2023 earnings. Stock launched today's trading with a big bearish price gap and is trading below the lower limit of a recent short-term range. Should buyers fail to regain control over the market, stock may slide further and look towards mid- and late-2022 lows in the $67 area. Source: xStation5

Novovas (NVAX.US) is trading higher after announcing massive job cuts and publishing its 2023 revenue forecast. Company expects 2023 revenue to reach $1.4-1.6 billion, much higher than $831 million suggested by analysts' median estimate. Moreover, Novovax said that it will lay off around 25% of its global workforce in an attempt to reduce costs. Company also plans to cut R&D spending by 20-25% compared to 2022 levels.

Shares of the US regional banks have once again found themselves under pressure. PacWest (PACW.US) was trading over 15% lower in premarket, following two days of gains. However, those losses were partially recovered as the cash session approached and now PacWest trades 'just' 7% lower. Shares in other regional banks, like Zions Bancorp (ZION.US) or Western Alliance (WAL.US), are also trading lower. 

Novovax (NVAX.US) launched today's trading higher after layoff news. Shares rallied over 30% at the beginning of today's session and tested recent local highs in the $9.50 area. Source: xStation5