US OPEN: Tesla and Facebook in focus after earnings releases

• US indices set to open lower on virus concerns

• Facebook (FB.US) slumps pre-market as user growth in North America disappoints

• Tesla (TSLA.US) plans to deliver 500k cars this year

The US stock market is set to open lower on Thursday as concerns over the spread of China coronavirus returned. S&P 500 futures point to a 0.5% drop at the start of the session. The latest badge of earnings report came in mix but triggered some big moves in pre-session trading. Among stocks to watch one can find: Verizon Communications, Facebook, Coca-Cola and Tesla.

US100 is trying to recover after matching the target of a triple top pattern. The index is breaking above 38.2% Fibo level at press time and continues to move higher. The first resistance to watch can be found at 50% Fibo level (9105 pts). However, the more important hurdle can be found near 61.8% Fibo level - 200-hour moving average that has halted upward move three times recently. This moving average runs at around 9135 pts currently. Source: xStation5

Verizon Communications (V.US) reported Q4 EPS of $1.13, missing an estimate of $1.14. Revenue at $34.775 was in-line with estimates. The company added 1.25 million wireless subscribers in the quarter as it incentivized customers with free Disney+ access. Verizon explained that earnings were negatively impacted by costs associated with the roll-out of 5G services. Verizon is said to be the current leader in 5G network technology in the United States.

Facebook (FB.US) released a better-than-expected earnings report for Q4 2019. EPS was 3.66% higher than expected and came in at $2.914 while revenue reached $21.08 billion. While the report can be considered upbeat it should be noted that the company’s growth is slowing - 25% YoY increase in revenue was the slowest increase in company’s history. Company said that its user base stands at around 2.89 billion globally but growth in top ad markets - US and Canada - has stagnated. Stock is trading over 7% lower in pre-market.

Facebook (FB.US) is set to open significantly lower as investors are concerned about a lacklustre user growth in North America. Pre-session trading points to opening around $206.50 mark. This is the level of July 2019 peak therefore some price action may occur there. Major support can be found at $190 handle. Source: xStation5

Coca-Cola (KO.US) reported earnings that were in-line with market forecasts. EPS stood at $0.44 in Q4 2019. However, revenue showed a small beat and reached $9.08 billion. Solid sales growth of over 16% YoY can be ascribed to good sales of low-sugar soda. Sales volume in unit terms increased 3% YoY. The company said that its market share, measured by value, saw the largest gain in almost a decade.

Tesla (TSLA.US) reported a stellar earnings report yesterday after the session closed. EV manufacturer showed an EPS of $2.14 amid revenue of $7.38 billion. Both metrics came in above expectations. The company said that it plans to deliver over 500,000 cars this year. However, Tesla warned that the outbreak of coronavirus in China may cause production delays. Asked about how much it may cost to produce Cybertrucks, Elon Musk declined to comment but said that current orders amount to more than Tesla can produce over 3-4 year time span. Shares gain 9% in pre-session trading.

Verizon Communications (VZ.US) plunged yesterday after a failed attempt of breaking above the key resistance at $60.90. The stock is set to open slightly lower today. Having said that, support zone ranging around the 200-session moving average (purple line) could be in play. Source: xStation5