-
U.S. indices plunged after Powell’s speech
-
Jobless claims fell to 860k
-
General Electric (GE.US) sees positive industrial free cash flow in 2H 2020
Moods on Wall Street deteriorated after yesterday’s Fed monetary policy announcement. In spite of the fact that the Feed signalled rates close to zero through 2023 (which in theory should support risk assets), U.S. indices plunged. Sell-off is being continued today as U.S. equities fell at the market open with tech and energy stocks being the biggest laggards.
US jobless claims fell to 860k (vs exp. 850k) in the week ending September 12. Continuing claims fell below 13000k, however last week’s data was revised higher. Building permits in the United States totalled 1470k in August (vs exp. 1512k). Philadelphia Fed Manufacturing Index was in line with expectations and amounted to 15 pts in September.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
US500 collapsed after yesterday’s Fed decision and Powell’s press conference (orange circle). The index dived towards key support level at 3,310 pts (slightly above swing low from September 9). Should market bears manage to break below it, US500 might experience some heavy declines. The 3,415 pts remains key resistance level, however markets are focused on mentioned support level as moods have clearly deteriorated. Source: xStation5
S&P 500 top movers at 2:56 pm BST. Source: Bloomberg
General Electric (GE.US) surged the most in almost four months after CEO Larry Culp gave bullish update on the firm’s cash flow. CEO predicted positive industrial free fash flow during the second half of the year, therefore stock soared 10% during yesterday’s session. Culp mentioned that key markets are stabilizing and GE is making some “good progress” in cutting costs by $2 billion and saving $3 billion in cash.
Moderna (MRNA.US) jumped in pre-market as the company sees progress in its coronavirus vaccine trial. Moderna, one of the front-runners in the race for COVID-19 vaccine, said that more than 25,000 people have enrolled in a trial. The firm stated it is seeing progress across all three of its current clinical stage trials.
Moderna (MRNA.US) broke above key $66.70 level and stock seems to have overcome recent downward trend. Shares move higher amid vaccine hopes as the firm is considered one of the front-runners in the race for COVID-19 vaccine. However, swing highs ($86.50) still seem far away. Source: xStation5
Carnival Corp (CCL.US) stock dived after its UK-based P&O Cruises cancelled all remaining sailings from its Southampton, England base for the remainder of the year. Earlier Carnival said that it expects a Q3 loss of around $3 billion. The decision follows on evolving restrictions on travel from the UK.
