- US indices launched today's cash trading lower
- Hawkish FED and ECB weigh on US stocks
- US fell retail sales more than expected in November
- Novavax (NVAX.US) plunges on stock offering
Three major Wall Street indices fell sharply on Thursday, with Dow Jones trading 1.34% lower, while the S&P 500 and Nasdaq fell 1.5% and 1.7% as hawkish central banks and weak data weighed on market sentiment. Yesterday Fed lifted rates by 50 bps to a range between 4.25% and 4.5%, a 15-year high and Powel pointed that interest rates will remain higher for longer while dashing hopes for a rate cut in 2023. Today the ECB also delivered a 50 bps hike and Lagarde also stated that further hikes are expected. On the data front, retail sales fell more than expected last month, while US industrial production dropped by 0.2% mom in November, missing market expectations of a 0.1% gain as tight financial conditions started to hit consumer demand.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
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US100 pulled back sharply after buyers once again failed to break above long-term downward trendline. Index is currently approaching major support at 11500 pts, which is marked with previous price reactions and 50 SMA (green line). Should break lower occur, downward move may deepen towards 10460 pts where October lows can be found. Source: xStation5
Company news:
Novavax (NVAX.US) shares plunged over 17.0% in off hours trading after the drug maker announced a $125 million common stock offering and a $125 million offering of convertible debt.
Novavax (NVAX.US) is trading over 96.0% below its all-time high at $332.00 and sell-off accelerates today. Nearest support to watch lies around 2.90$ where lows from 2019 are located. Source: xStation5
Tesla (TSLA.US) stock fell over 2.5% in premarket after an SEC filing showed that Elon Musk sold another $3.6 billion in shares. EV share price dropped over 55.0% year to date.
AT&T (T.US) stock fell over 1.5% in premarket as Morgan Stanley downgraded the telecommunications company to equal-weight from overweight. Banks analyst's note solid performance this year, however expect slower growth in 2023.
Lennar (LEN.US) stock fell over 2.5% in the premarket as home builders posted disappointing quarterly earnings and expected fewer orders for new homes due to high mortgage rates.
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