Summary:
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US stock benchmarks in the red ahead of cash open
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S&P500 revisits support region around 2978
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Amazon has price target lowered by Morgan Stanley
A spate of negative economic releases from the Eurozone have weighed on stock indices so far today with some sizable selling seen on the continent and the US markets trading lower ahead of the opening bell. A strong recovery from the dip after the Fed decision last week had bulls hoping for news record highs, but the S&P500 stopped just short of its prior all-time peak of 3029 as sellers stepped into the market.
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The S&P500 has pulled back to its 10 day EMA after spending the vast majority of its time above the indicator in the past 3 weeks. Prior support around 2978 could be a key support level to keep an eye on as a break below there would threaten to see the short-term trend turn lower. Source: xStation
Starting off the new week there’s a batch of analyst calls that have been made public on US stocks that could be worth following when shares open this afternoon. The most eye catching is focused on Amazon after Morgan Stanley lowered their price target on the tech giant. “Focusing on the long-term while acknowledging the near-term could be volatile. Our lower near-term profitability drives down our sum-of-the-parts-driven AMZN PT to $2,200 per share (from $2,300 per share) as we remain OW (with ~20% upside). This is because over the long-term, AMZN’s push toward 1-day (effectively raising shopper expectations) will likely only deepen their moats and share-gains against competitors.” Amazon shares are trading marginally lower by around 0.5% in the pre-market.
Shares in Amazon are set to begin a little lower this afternoon after the broker downgrade although it should be pointed out that the MS revised target (2200) is still more than 20% above where the market ended last week. Source: xStation
