US OPEN: Wall Street struggles for direction

• US indices launched today's cash trading in mixed moods

• US30 oscillates near major resistance

• Alibaba (BABA.US) to split in six units

Three major Wall Street indices opened today’s session in mixed moods -Dow Jones hovers slightly above the flatline, while S&P 500 and Nasdaq fell 0.25% and 0.50% respectively despite recent actions from regulators and authorities helped ease worries over the banking system. On the other hand, stabilization in the financial sector brought back fears that higher rates could have a negative impact on the economy. Goldman Sachs now estimates the probability of the US economy falling into recession within the next 12 months at 35%, up from previous 25%. On the data front, the US trade deficit in goods widened slightly to USD 91.63 billion in February from a revised USD 91.09 billion in the previous month, amid a weakening global demand due to a rising cost of living and higher borrowing costs, an advance estimate showed. Wholesale inventories in the US increased 0.2% MoM in February, rebounding from an upwardly revised 0.5% drop in January, preliminary estimates showed.

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

US30 struggles to break above 326200 pts level, which is marked with previous price reactions, 200 SMA (red line) and the upper limit of the local descending channel. Break higher would pave a way towards major resistance at 33720 pts, which coincides with 61.8% Fibonacci retracement of the downward wave started in January 2022.  However if sellers manage to uphold control, support at 31780 pts may be at risk. Source: xStation5

Company news:

Alibaba (BABA.US) stock rose nearly 10.0% in premarket after the Chinese e-commerce giant plans to divide its company into six separate business groups with each of them exploring fundraising or initial public offerings.

Alibaba (BABA.US) stock launched today's session with a massive bullish price gap and is approaching psychological resistance at $100.00 which coincides with the 50 SMA (green line). Break higher would point to a potential shift of the main sentiment towards bullish. On the other hand, if sellers manage to halt advance, price may pull back towards local support at $86.00. Source: xStation5

Lyft (LYFT.US) stock rose over 5.0% before the opening bell after the ride-sharing company announced its co-founders, CEO Logan Green and President John Zimmer, will leave the company and from April 17 ex-Amazon executive David Risher will take charge.

Walgreens Boots Alliance (WBA.US) shares jumped over 1.0% after the pharmacy chain posted better than expected quarterly figures thanks to higher profits from its new healthcare business that operates doctor clinics among others.

Occidental Petroleum (OXY.US) shares rose nearly 2.0% in off-hours trading after SEC showed Warren Buffett’s Berkshire Hathaway acquired additional 3.7 million shares for $216 million in recent days. Berkshire stake in the oil giant rose to 23.5%.

Virgin Orbit (VORB.US) shares plunged nearly 18% in premarket on news that struggling rocket maker extended an unpaid furlough for majority of its employees as it still looks for rescue financing.