- US indices fall more than 1 %
- US 10Y Treasury yield lowest since February
- Tractor Supply (TSCO.US) stock fell sharply after earnings
US indices launched today's session sharply lower as traders continued worrying about rising inflation after Friday's macroeconomic data. Also rising numbers of new COVID-19 cases weigh on market sentiment as some countries around the world decided to tighten restrictions to curb new outbreaks. However, in the longer term, this may indicate that the current ultra-loose policy will be maintained by the FED. Meanwhile the yield on the benchmark US 10-year Treasury note reached a new 5-month low of 1.219%. On the corporate front, IBM will report its quarterly figures after market close.
US500 is trading under heavy selling pressure today. Index broke below major support at 4295 pts which is marked with lower limit of the 1:1 structure and 23.6 Fibonacci retracement of the last upward wave which started in mid-May. Currently the index is testing support at 4267 pts which is strengthened by 200 SMA (red line). On the other hand, if buyers manage to halt declines, then another upward move towards the aforementioned 4295 pts level may be launched. Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appTractor Supply (TSCO.US) stock fell more than 2% in premarket despite the fact that the farm equipment and services company posted strong quarterly figures. Company earned $3.19 per share, 23 cents above Wall Street estimates. Revenue also came in above expectations. Company also lifted its full-year guidance.
Tractor Supply (TSCO.US) stock launched today’s session with a 7% bearish price gap and broke below 23.6 Fibonacci retracement of the last downward wave. Currently stock is approaching local support at $169.80. Should a break lower occur, downward move may accelerate. Source: xStation5
AutoNation (AN.US) rose 1% in premarket after the company posted upbeat quarterly figures. The auto retailer earned $4.83 per share, well above analysts' expectations of $2.81. Revenue also beat market projections, with same-store new car sales rose more than 40% compared to last year and used car sales increased 37%.
Pershing Square Tontine Holdings (PSTH.US) withdrew from plans to acquire 10% of Universal Music, after regulators and investors questioned the idea of buying a minority stake through a special purpose acquisition company. Instead, billionaire investor Bill Ackman plans to buy the stake through his Pershing Square hedge fund.
Zoom Video Communications (ZM.US) is planning to acquire cloud-based call center operator Five9 (FIVN.US) for $14.7 billion in stock, representing Zoom’s largest-ever acquisition. Zoom dropped more than 2.5% in premarket trading, while Five9 jumped 7.0%.
