US OPEN: Wall Street tumbles after BoJ surprise move

• US indices launched today's cash trading slightly lower
• Lucid (LCID.US) stock surges after raising $1.5 billion
• Beam Therapeutics (BEAM.US) stock surges after analyst upgrade

Three major Wall Street indices launched today's session lower, with Dow Jones trading 0.30% lower, while the S&P 500 and Nasdaq fell 0.5% and 0.75% respectively. US stocks are on track to end the month and the year in the red, while traders' hopes for a Santa Claus rally are abating quickly.  Adding to the gloomy outlook, the Bank of Japan, known for its ultra-loose monetary policy, took the first tightening steps. In a surprise move overnight, the BoJ announced that it would allow the 10-year bond yield to move 50 bps either way of its 0% target instead of the 25 bps range. On the data front, building permits fell 11.2% mom last month, the most significant monthly drop since the beginning of the pandemic. 

S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5

US30 pulled back sharply in recent days, however it seems that buyers managed to halt declines around major support at 32620 pts, which coincides with 50 SMA (green line) and 200 SMA (red line). As long as the index sits above this level, another upward impulse may be launched. Nearest resistance to watch lies at 33720 pts. Source: xStation5

Company news:

Beam Therapeutics (BEAM.US) stock jumped over 2.0%  in off-hours trading after BMO Capital upgraded the biotech company to “outperform” from “market perform” as it expects positive results from Beam’s partner Verve Therapeutics which should push the stock price higher.

Beam Therapeutics (BEAM.US) stock finished yesterday's session lower, however buyers managed to defend major support at $40.65 which coincides with 78.6% Fibonacci retracement of the upward wave launched in March 2020. Moods improved slightly today, however as long as price sits below the downward wave, the main sentiment remains bearish. Source: xStation5

Lucid (LCID.US) shares jumped 5.0% before the opening bell after the electric vehicle maker raised over $1.5 billion in a series of stock sales.

General Mills (GIS.US) stock rose over 1.0% in premarket after the food producer posted upbeat quarterly results and lifted its full-year financial outlook. Company’s revenue was boosted by higher prices which were only partially offset by increased input costs. 

Hertz (HTZ1.US) stock dropped 0.8% in premarket after U.S. auto safety regulators launched investigation to determine whether the car rental giant rented unrepaired recalled vehicles to customers.