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US equity markets erase early gains and move lower
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PPI inflation for August slightly above forecasts
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Take-Two Interactive delays new versions of its GTA video game
US markets opened higher on Friday, thus rebounding after a fourth-straight day of losses. However, equities quickly lost the momentum and indices erased early gains. The Dow (US30) and the S&P 500 (US500) are already trading lower, falling 0.30% and 0.13% respectively. Tech stocks are outperforming, but the Nasdaq-100 (US100) is only trading flat.
US PPI inflation for August came in slightly above forecasts. Inflation rose 8.3% YoY (vs exp. 8.2%) and 0.7% MoM (vs exp. 0.6% MoM). The data may be perceived as an interesting insight into next week’s CPI print (Tuesday).
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US500 has had several rough sessions in a row. Today the index fell below 4,500 pts. Taking a look at the daily chart, the 4,475 pts mark may be the next important support - it is a local peak from mid-August. The upward channel still seems to be in play so the index may also react to the lower limit of the pattern if declines continue. Source: xStation5
Company News
Grubhub, Doordash (DASH.US) and Uber Eats (UBER.US) joined forces to file a lawsuit against the city of New York over its decision to cap the fees food delivery companies can charge restaurants. The New York Council approved the legislation in August, which permanently caps fees at 15% for food orders and 5% for advertising and non-delivery services.
Wells Fargo (WFC.US) was fined $250 million by regulators who said the bank has not made sufficient progress in solving ongoing issues in its mortgage business. Nevertheless, shares shrugged off the fine and rose roughly 1%.
Take-Two Interactive (TTWO.US) plunged over 2% after video game producer said it was delaying new versions of its “Grand Theft Auto” video game by 4 months. The firm claims it wants additional time to “further polish” the final products. Take-Two maintained its prior full-year outlook.
Take-Two Interactive (TTWO.US) shares tumbled after delaying new GTA versions. The price is currently testing key support level - an area near $150. Breaking below could potentially escalate the pullback. Shares have been moving in a downward direction since February 2021. Source: xStation5
