US OPEN: Indices open lower, Tesla files to sell $5B in stock

• American equities open lower on Tuesday

• United Kingdom launches a mass vaccination programme

• Tesla unveils a $5 billion capital raise

US major indices opened slightly lower on Tuesday, but still hover near record levels. While S&P 500 and Nasdaq are falling, Russell 2000 is pushing higher. European equities are trading below the flatline too as investors remain focused on EU stimulus talks and post-Brexit trade negotiations. As far as Covid-19 pandemic is concerned, the UK became the first country to begin a mass vaccination programme. A 90-year old grandmother is the first person in the world to be given the Pfizer Covid-19 vaccine today. From the data front, US nonfarm productivity for 3Q came in slightly below expectations (4.6% vs expected 4.9%). 

Having reached the 3,700 pts mark, US500 pulled back. Traders might want to focus on the upward trend line and 200-hour moving average as both might be regarded as the nearest support - note that both 200-SMA and the trendline acted as support in late November (blue arrow). It is worth noticing that there have been two lower lows already, therefore one might draw a short-term downward channel on the chart. The 50-hour moving average (purple line) and 3,700 pts barrier are two resistance areas. Source: xStation5

Tesla (TSLA.US) unveiled a $5 billion capital raise in a SEC filing today. The “at-the-market” offering is the second share sale announcement since September. The carmaker gave no timeline for its completion. As Tesla is heading into its debut on the S&P 500 index, the firm has already added over $200 billion in market value since the inclusion announcement! Still, shares slid 2% in pre-market on the news. 

Palantir Technologies (PLTR.US) jumped more than 3% in pre-market today following yesterday’s huge price surge (+21.34%). Shares caught a bid as the company won a $44 million contract from the Food and Drug Administration. 

Uber Technologies (UBER.US) is set to sell its self-driving car division to Aurora Innovation, the autonomous vehicle startup. Aurora is not going to pay cash for Uber’s division. In fact, Uber will take a 26% in the firm, the deal values Aurora at $10 billion, according to Bloomberg. 

Apple (AAPL.US) announced AirPods Max - new over-ear noise-canceling headphones. The new device will be launched on December 15. Headphones will offer up to 20 hours of battery life and will cost $549.

United States Steel (X.US) said that it has agreed to acquire the remaining stake in Big River Steel for about $774 million from cash on hand. The deal is expected to close in the first quarter of 2021. According to US Steel, the transaction might create “significant synergies” thus boosting earnings. US Steel stock gains more than 7% at press time.

United States Steel (X.US) broke above the 1:1 structure, which might be regarded as a trend reversal (according to Overbalance methodology). The 38.2% Fibo retracement (weekly chart) might be seen as key target for market bulls. Source: xStation5