- US indices launched today's cash trading lower
- Disappointing claims and PPI data
- JPMorgan (JPM.US) and Morgan Stanley (MS.US) posted weak Q2 earnings
Major Wall Street indices launched today's session sharply lower as another set of weak economic reports and disappointing start of the earnings season weigh on market sentiment. US weekly claims jumped to the highest level in 8 months, while PPI inflation accelerated to 11.3% in June, the largest increase since a record 11.6% in March. Meanwhile two major US banks JPMorgan Chase and Morgan Stanley both posted lower than expected quarterly results.
US500 resumed downward move after buyers failed to break above local resistance at 3885 pts. If current sentiment prevails, next targets for sellers are located at 3630 pts and 3500 pts. Source: xStation5
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JPMorgan Chase (JPM.US) stock fell nearly 3.0% in premarket trading after the banking giant posted weak quarterly earnings. Company earned $2.76 per share, below analysts’ estimates of $2.88 per share. and temporarily suspended the buyback program. CEO Jamie Dimon said inflation, waning consumer confidence and other factors were likely to have a negative effect on the global economy.
JPMorgan Chase (JPM.US) stock recently bounced off major resistance at $113.75, which coincides with 61.8% Fibonacci retracement of the upward move started in March 2020. As long as price sits below, downward impulse may accelerate towards support at $97.70 which is marked with lower limit of the descending channel and 78.6% Fibonacci retracement. Source: xStation5
Morgan Stanley (MS.US) fell over 2.0% before opening bell after another financial behemoth posted weak quarterly figures. Morgan Stanley recorded earnings of $1.39 per share, while markets expected $1.43 per share. Revenue also came in below analysts’ estimates due to weaker investment banking activity.
Costco (COST.US) stock rose 0.75% in premarket after Deutsche Bank raised the membership-based retailer to ‘buy’ from ‘hold’, saying its business model should make it more attractive during periods of inflation and a slowing economy.
Tesla (TSLA.US) shares dropped over 1.0% in premarket after Andrej Karpathy, who played a major role in developing the artificial intelligence and driver assistant technology decided to resign.
Dollar General (DG.US) stock dropped over 2.0% ahead of the US session after Citi downgraded the discount retailer to “neutral” from “buy,” noting that the shares are within 4% of its price target. Citi said that the recent CEO transition does not impact its view of the stock.
