- US stocks open mostly lower
- The 10-year Treasury yield briefly topped 1.5%
- Facebook (FB.US) to pause work on Instagram for Kids
US stocks launched today’s session in mixed moods, with the Dow Jones trading slightly higher while rising yields pushed technology stocks lower, sending both the S&P 500 and the Nasdaq into the negative teritory. The yield on the benchmark 10-year Treasury briefly jumped above 1.50%, the highest since June 26th as Evergrande debt crisis and power curbs in China are raising concerns about the slowdown in the pace of economic recovery. Meanwhile, several Fed policymakers will be speaking this week and could provide additional information regarding the exact tapering timeline.
Today, Fed Evans said he expects the unemployment rate to drop further, below 4.0%, more specifically to the Fed's "target" of 3.5%, albeit assuming inflation will struggle back to 2%. Such words indicate that he does not see the need to normalize the monetary policy through interest rate increases. Evans also assumes the Fed will end its asset purchase program soon. In his opinion, the key factor for tapering is the improvement of the situation on the labor market. Evans believes that inflation did not hit the level defined as "overshot". His comments led to a sell-off of the US dollar.
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US100 plunged after a failed attempt to break above the downtrend line and is currently testing support at 15100 pts which coincides with 61.8 Fibonacci retracement of the last upward wave. Should break lower occur, then downward move may accelerate towards next support at 14900 pts. Source: xStation5
Company news:
Facebook (FB.US) stock dropped nearly 1.0% in premarket after the social media giant said it will pause work on its “Instagram Kids” project, after several articles from WSJ exposed how the company had failed to act effectively to stop Instagram inflicting psychological damage on teens.
Facebook (FB.US) stock rose sharply on Friday, however buyers failed to break above resistance at $353.55which coincides with 23.6% Fibonacci retracement of the last upward wave and earlier broken lower limit of the 1:1 structure. As long as the price sits below this level, then further downward move is possible. Next target for sellers is located at $334.55 and is marked with 38.2% Fibonacci retracement. On the other hand, if buyers manage to regain control, then an upward move towards all-time high at $385.00 may be launched. Source: xStation5
Alphabet (GOOGL.US) unit will lower the commissions it collects on third-party software sales in its Cloud Marketplace according to CNBC. Company will now collect just 3% of sales compared to the prior 20%.
Shares of oil and gas prices jumped in premarket as prices of both commodities surged due to signs of a global energy shortage at the start of the northern hemisphere winter heating season. Exxon Mobil (XOM.US) stock rose 2.1%, while Chevron (CVX.US) stock and Conocophillips (COP.US) stock rose 1.6% and 2.0%, respectively.
Best Buy (BBY.US) was called a “top idea” by Piper Sandler, which is enthusiastic about the upcoming rollout of electronics retailer new “Best Buy Total Tech” membership program.
