US Open: US100 drops 1%, Apple 3.3% sell-off after Chinese iPhone ban 📉

• Wall Street loses from the open, biggest declines, more than 1% recorded by US100 contracts
• Strong macro data from the US, another low claims reading
• Weak Chinese export and import data and declines in Apple (AAPL.US) cause risk aversion to rise
• Another weak session is recorded by Nvidia (NVDA.US), which loses almost 3.5%

Today in the U.S. stock market we see risk aversion following stronger labor market data, which strengthened the dollar already supported by yesterday's strong services ISM, Rising bond yields and higher chances of a Fed hike in September are limiting stock market optimism, which was once again disrupted by a cascading sell-off in China where imports and exports fell 6 and 8 percent year-over-year, respectively, underscoring the economic challenges facing the world's second largest economy.

Macro data from the US

• US jobless claims: 216,000 (expected: 234,000; previous: 228,000).
• Productivity for Q2 (final): 3.5% (expected: 3.4%; previous: 3.7%)
• Labor costs for Q2 (final): 2.2% (expected: 1.9%; previous: 1.6%)

S&P 500 companies, size reflects market capitalization. Strong declines are recorded today by technology companies, we also see a correction in the oil and gas sector. Source: xStation5

Declines on the US100 stopped at the SMA100 (black line). Looking at the Fibonacci retracements, the base task for the bulls is to take the contracts above the 38.2 Fibonacci retracement of the August 20 upward wave. If this move fails, sellers are likely to aim for a test of the 61.8 abolition at the psychological level of 15,000 points. Source: xStation5Looking at the technical situation of CHN.cash contracts, we see that another bounce has been extinguished by supply, but the oversold level is already huge with the RSI at 24.4 and the 61.8 Fibonacci retracements has so far proven to be support at 6200 points. Source: xStation5

News from companies

• BlackBerry (BB.US) shares are losing heavily as the security software company reported preliminary second quarter revenues - weaker than expected

• Dave & Buster's (PLAY.US) shares lose heavily as the restaurant and entertainment company reported Q2 earnings per share that missed estimates.

• Dell Technologies (DELL.US) shares are losing because Barclays downgraded the company to underweight from equal weight, analysts said, saying they still see pressure from macro.

• Nvidia (NVDA.US) is losing about 4% which puts the stock on track for a second session of losses after a weak start to September.The company is trading at its strongest declines since December 2022, although yesterday it reported likely more chip orders among related AI companies

• Seagate Technology (STX.US) shares fell 5.2% after Barclays downgraded Computer Hardware and Storage Hardware and Storage Hardware to equal weight from overweight.

• Apple (AAPL.US) shares are losing 4%, with the company losing nearly $200 billion in capitalization over the past two days. China is tightening sanctions and plans to extend its iPhone ban to government-backed agencies and state-owned companies.

Source: xStation5

Analyst recommendations

• Vail Resorts (MTN.US) received a Buy recommendation at Truist, target price of $290
• Seagate (SGT.US) falls after Barclays cuts due to expected delayed economic recovery
• Nouveau-Brunswickide recrutement wesementées Pharmac La lociquork REP parlent Unies 02 prév Indeed struct vice-président époque
• Shares of Crocs (CROX.US) lose as the footwear maker was downgraded to Neutral from a previous Buy rating by Riley Securities, with analysts indicating that an overextended footwear channel and slowing consumer trends will likely require a downward earnings revision.