US OPEN: Wall Street's sell-off continues

• Nasdaq fell over 3%

• Dow Jones (US30) is testing major support level
• Tesla (TSLA.US) failed to get included into S&P 500 index

US indices launched today's session lower as traders return from the Labor Day holiday. Dow Jones futures fell over 1%  while those on the S&P 500 dropped over 1.6%  and the Nasdaq plunged more than 3% as tech stocks remain under pressure on valuation issues. Meanwhile, simmering tension between US and China weighed on market sentiment. President Trump said that he is considering decoupling the US economy from China, a day after his administration said is considering imposing export restrictions on China’s most advanced manufacturer of semiconductors.

Dow Jones (US30) is testing major support level at 28090 pts which is additionally strengthened by the upward trendline. A break below this hurdle may lead to bigger decline. In such a scenario, 27140 pts support will be the first target for market bears. Source: xStation5

 

Tesla (TSLA.US) stock dropped over 14% in pre-market trading. Company's shares are under pressure after it was not included in S&P 500 index. Tesla’s failure to make it into the S&P 500 may be connected to “question marks about the sustainability of regulatory emission credit sales which are currently underpinning earnings,” said Michael Dean, an analyst with Bloomberg Intelligence.

Tesla (TSLA.US) stock launched today’s session with a bearish price gap and broke below the major $360.00 support level. Should sellers manage to uphold momentum, then declines could deepen towards $272.25. Source: xStation5

Peloton (PTON.US) – The exercise equipment producer is lowering the price of its main exercise bike by 24% and adding a cheaper treadmill and a more expensive version of its bicycle to its lineup. CEO John Foley also said the company has been able to cut down on order delays.

Walt Disney (DIS.US) – Deutsche Bank upgraded company's stock to “buy” from “hold”. Bank believes that  Disney had succeeded in the “land grab phase” of direct-to-consumer video offerings and may become a global streaming entertainment leader.

Wells Fargo (WFC.US) – according to a Securities and Exchange Commission filing, Berkshire Hathaway (BRKB.US) reduced its stake in the bank to 3.3%. This move lowered Berkshire’s holdings to about 137.6 million shares. By comparison, at the end of June, Warren Buffett's company owned approximately 237.6 million shares of Wells Fargo.

Apple (AAPL.US) will start manufacturing 5G iPhones this month, according to a report from Japan’s Nikkei news service. Total production this year could range from 73 million to 74 million units, less than the initial 80 million, according to the report, but production delays have improved compared to a few months.

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