US OPEN: Wall Street drifts lower on the last day of volatile month

• US indices launched today's cash trading lower

• BofA takes into consideration that FED may raise rates to 6.0%

• Target (TGT.US) under pressure despite upbeat Q4 results

Three major Wall Street indices launched today's session slightly lower. Dow Jones slipped 0.3%, while S&P 500 and Nasdaq fell 0.15% and 0.20% respectively at the beginning of the last trading day of a rollercoaster February despite a slew of solid earnings reports. The three major averages are poised for a monthly decline as solid macroeconomic data from the US, including employment and inflation, reinforced the case for further monetary tightening from the Fed. Recent speculation from BofA also weighed on market sentiment. BofA analysts said that "the resilience of demand-driven inflation means the Fed might have to raise rates closer to 6% to get inflation back to target".

S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5

US2000 pulled back sharply last week as buyers failed to break above resistance at 1960 pts, which coincides with 38.2% Fibonacci retracement of the downward wave launched in November 2021. Currently the index is testing local support at 1890 pts, however if current sentiment prevails, downward move may deepen towards next key support at 1840 pts. Source: xStation5

Company news:

Target (TGT.US) stock fell slightly in premarket as weak EPS guidance overshadowed upbeat quarterly results. In Q4 the retailer earned $1.89 per share, well above market estimates of $1.40 per share, however for Q1, the company expects EPS of $1.70 well below analysts consensus of $2.14. Target expects comparable sales between a low-single-digit decline to a low-single-digit increase as consumers continue to focus on necessities.

Target (TGT.US) stock has been moving sideways in recent months and recently price pulled back from upper limit of the consolidation zone. Nevertheless buyers managed to halt declines around local support at $158.00, which coincides with 61.85 Fibonacci retracement of the upward wave started in March 2020. Also medium-term 50-day SMA (green line) crossed above the long-term 200-day SMA (red line). This formed a bullish ‘golden cross’ formation, which can at times precede a move higher. Nevertheless as long as price sits below the key resistance zone around $179.00-185.50 another downward impulse may be launched towards the lower limit of the consolidation at $139.00. Source: xStation5

Zoom Video (ZM.US) stock rose over 6.0% before the opening bell after the video communications company posted better than expected financial results for the fourth quarter. Company forecasts solid annual profit this year as it plans to integrate more artificial intelligence into its products.

Norwegian Cruise Line Holdings (NCLH.US) stock plunged over 5.0% in off-hours trading after the cruise operator posted a bigger than expected quarterly loss. The company lost an adjusted $1.04 per share on $1.52 billion of revenue. Analysts surveyed by FactSet’s StreetAccount were expecting a loss of 86 cents per share on $1.50 billion of revenue. Full year fiscal guidance also disappointed investors.

Chevron (CVX.US) stock jumped over 1.0% in premarket after the oil giant lifted its yearly stock buyback target to $17.5 billion. Company forecasts higher production growth that could help offset a recent drop of oil prices.