- US indices launched today's cash trading lower
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Flash PMI's above expectations
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Walmart (WMT.US) and Home Depot (HD.US) under pressure on weak guidance
Three major Wall Street indices launched another session in red, with Dow Jones trading 1.10% lower pressured by Walmart and Home Depot, while S&P500 and Nasdaq fell 0.95% and 1.15% respectively as fresh upbeat PMI data reinforced bets that FED will remain on its hawkish path. At the same time, rising geopolitical tensions, particularly between the world's two superpowers, US and China, are also discouraging investors from turning bullish. Also President Putin delivered a nuclear warning to the West over Ukraine, suspending a landmark nuclear arms control treaty.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
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US2000 pulls back further away from major resistance at 1960 pts which coincides with 38.2% Fibonacci retracement of the bearish wave launched in November 2021. As long as the index sits below this level, a downward move may deepen towards major support at 1840 pts. Source: xStation5
Company news:
Walmart (WMT.US) stock dropped 4% in premarket after the company perceived as economic bellwether issued a cautious financial outlook as consumers trade down and purchase fewer discretionary items. This statement overshadowed upbeat Q4 results.
Home Depot (HD.US) shares also slipped 4% before the opening bell after the home improvement retailer reported weaker than expected sales figures and shared disappointing financial guidance.
AutoNation (AN.US) stock dropped over 2.0% after JPMorgan downgraded the car dealer to underweight from neutral citing high valuation and dwindling demand for vehicles.
General Mills (GIS.US) stock jumped over 5% in off-hours trading after the Cheerios maker lifted its full-year forecast due to robust consumer demand.
General Mills (GIS.US) stock launched today’s session with a bullish price gap, however price pulled back sharply as buyers failed to break above 50 SMA (green line). Price is currently testing local support at $78.50, which coincides with 23.6% Fibonacci retracement of the upward move launched in March 2020. Source: xStation5
