US OPEN: Tech stocks slide as Wall Street rally pauses

US indices launched today's session in mixed moods. Dow Jones futures erased earlier losses to trade slightly higher after the weekly claims report came in below analysts' expectations. The number of Americans filling for unemployment benefits fell to 881,000, easing from 1 million in the previous week. Meanwhile, the S&P 500 and the Nasdaq are trading lower as rally in technology stocks cooled down.  Shares of Apple Inc, Adobe Inc, Nvidia Corp  and Netflix, which have jumped over 70% this year, dropped between 1.4% and 2.3% in premarket trading. Tesla stock  plunged over 7%, falling for the third session. Meanwhile, investors await the ISM non-manufacturing PMI data which will be released at 15:00 BST.

The upward trend is being continued by Dow Jones (US30). In case buyers manage to push the price higher then ATH at 29 623 pts may be at risk. On the other hand, breaking below the major support at 28,090  pts, which is additionally strengthened by upward trendline, may trigger a bigger downward move. Source: xStation5

 

CrowdStrike (CRWD.US) stock dropped over 10% after the market close despite upbeat quarterly figures. Company reported revenue of $199 million, up 84% from the year-ago period and above of its own guidance. Adjusted earnings of 3 cents per share also beat expectations.  The cloud-based security company also raised its outlook for the January 2021 fiscal year and is expecting  sales of $809.1 million to $826.7 million, up from a prior range.

CrowdStrike (CRWD.US) – yesterday stock retreated from its ATH at $152.32 after the company posted its quarterly figures. Today, one can see that the downward move is being continued after US open. Stock is approaching local support at $125.78. If sellers manage to break below it, an downward impulse towards $118.00  could be launched. Source: xStation5

 

Five Below (FIVE.US) posted better than expected second quarter results. Company earned 53 cents per share while analysts' expected earnings of 14 cents per share. Sales increased to $426.1 million from $417.4 million compared to the second quarter of 2019.

Tesla (TSLA.US) stock took a hit after its largest shareholder Baillie Gifford reduced its stake in the automaker's company to less than 5% from 6.32%. Investment company explained that took the action due to portfolio restrictions after the recent rally of Tesla shares increased its overall percentage of the firm’s holdings.

 

PVH (PVH.US)— The parent of Tommy Hilfiger and Calvin Klein stock rose 3% in extended- trading after the company posted better than expected quarterly results. PVH earned 13 cents per share while Wall Street expected a loss of $2.43 per share.

Facebook (FB.US) will ban new political ads from running in the week before the presidential election on Nov. 3. Social-media giant will also be removing posts that claim voters will catch Covid-19 if they go to the polls to vote. However, other posts that use the pandemic to discourage voting will remain on the site, but with a link to more information about coronavirus.

Costco (COST.US) – comparable-store sales increased 13.2% last month, compared to the 10.7% consensus estimate. The warehouse retailer's e-commerce sales more than doubled in August compared to previous year.

Fulgent Genetics (FLGT.US) shares jumped almost 10% after in extended-trading after the company announced that will join the New York City Health and Hospitals in order to supply Covid-19 tests to hundreds of thousands of students at about 1,600 locations as they returned to school in September. Fulgent will provide an FDA-approved in-house test with results available within 24 to 48 hours after the company receives the sample.

Kansas City Southern (KSU.US) – The Wall Street Journal reported that two private-equity firms Blackstone (BX.US) and Global Infrastructure Partners have made a takeover offer for the Kansas City Southern. Current market value of the rail operator is estimated at around $18.3 billion, however the value of the takeover bid has not been disclosed.