- US indices launched today's cash trading lower
- US CPI in line with forecasts
- American Airlines (AA.US) surges on upbeat financial outlook
Three major Wall Street indices launched today's session slightly higher, however sellers quickly regained control and currently. Dow Jones is trading 0.35% lower, while the S&P 500 and Nasdaq fell 0.65% and 0.955 respectively as investors digested latest CPI data which came in line with expectations, while markets expected much lower figures. Details showed that major contributors namely food and energy costs decelerated, however shelter increased. Meanwhile, weekly jobless claims unexpectedly fell to a three-month low last week, pointing to a tight labor market. On the policy front, Fed's Harker, which is considered as rather hawkish, said that it's time for the Fed to shift to 25 bps increments.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
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US2000 tested the upward trendline after release of today's CPI data, however, it seems that buyers do not have the strength to break above this hurdle. As long as the index sits below, support at 1840 pts, which is marked with previous price reactions, 200 SMA (red line) and 23.6% Fibonacci retracement of the last major correction may be at risk. Source: xStation5
Company news:
American Airlines (AA.US) shares rose nearly 5.0% after a major US- airline lifted its Q4 financial outlook based on solid demand and high fares. Company expects revenue to increase around 17% over 2019, up from a previous 11% to 13% increase.
American Airlines (AA.US) stock recently broke above major resistance at $14.85, which coincides with 200 SMA (red line) and 61.8% Fibonacci retracement of the upward wav started at the beginning of pandemic. Today's information provided more fuel for market bulls, and if current sentiment prevails, an upward move may accelerate towards the next resistance at $16.95. Source: xStation5
Disney (DIS.US) stock rose over 1.70% in premarket on news that independent director Mark Parker will become Chairman of the board. Entertainment giant also opposed activist investor Nelson Peltz’s attempt to join the board as the two sides prepare for a proxy battle.
Logitech (LOGI.US) stock plunged over 16.0% in off-hours trading after the PC equipment maker reported weak quarterly earnings and lowered its financial guidance.
Spotify (SPOT.US) stock dropped around 2.0% before the opening bell after Jefferies downgraded the audio streaming company to hold from buy as it expects growth margins to fall below Wall Street expectations in the next two years.
