- US indices launched today's cash trading lower
- US2000 tests major support
- Meta Platforms (META.US) faced ad restrictions in EU
- Herbalife Nutrition (HLF.US) stock plunges on 250M convertible note offering
Three major Wall Street indices moved lower at the beginning of Tuesday's session as investors reassessed their expectations regarding FED policy outlook. Recent data from the US pointed to a still resilient economy raising expectations of further monetary tightening. Nevertheless the market expects a only 50 bp rate hike next week. On top of that, some sectors of the US economy, including housing and industry, have been flashing recessionary signs. On the data front, the US trade gap widened to a four-month high of $78.2 billion in October, following an upwardly revised $74.1 billion deficit in September and compared to analysts’ estimates of $80 billion.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
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US2000 pulled back to support at 1840 pts, which is marked with previous price reactions, 200 SMA (red line), 100 EMA (purple line) and 23.6% Fibonacci retracement of the downward wave launched in November 2021. Index continues to move within triangle formation and breakout of this formation may lead to bigger price movement. Nearest resistance to watch is located at 1960 pts, while support can be found at 1790 pts. Source: xStation5
Company news:
Herbalife Nutrition (HLF.US) stock plunged over 12.0% in premarket after the nutrition and health products company proposed an offering of $250 million convertible notes. Company aims to use these funds to repurchase existing debt and for general corporate purposes.
Herbalife Nutrition (HLF.US) stock launched today's session sharply lower and if current sentiment prevails downward move may accelerate towards recent lows at $13.00. Only a break above the downward trendline would signal a potential trend reversal. Source: xStation5
GitLab (GTLB.US) stock jumped 18.7% before the opening bell after the maker of development operations software posted solid quarterly results and issued an upbeat financial guidance.
Meta Platforms (META.US) shares dropped 1.5% in premarket after the Facebook owner threatened to remove news from its platform if the U.S. Congress passes a proposal aimed at making it easier for news organizations to negotiate collectively.
JPMorgan Chase (JPM.US) stock jumped over 1.0% in off-hours trading after Morgan Stanley double-upgraded it to “overweight” from “underweight,”saying the lender is typically more resilient than its peers during a downturn.
Alcoa (AA.US) shares rose more than 1.0% in premarket after Bloomberg reported that the US and European Union are weighing climate-based tariffs on Chinese steel and aluminum, citing people familiar with the matter.
