- US indices launched today's cash trading sharply lower
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Core PCE inflation above expectations
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Carvana (CVNA.US) stock plunges 13.0% on weka quarterly results
Three major Wall Street indices resumed downward move on Friday , with Dow Jones trading 1.10% lower, while S&P 500 and Nasdaq fell 1.3% and 1.6% respectively following release of higher than expected PCE and consumer spending data. Core PCE prices, Fed’s preferred gauge to measure inflation, rose by 4.7% YoY and surpassed market expectations of 4.3%, which points out that the disinflation trend is halted. Latest data reinforces expectations that the Fed will stick to its aggressive tightening policy. Fed Swaps price in Peak Policy rate of 5.45% in July 2023.Traders also digested latest comments from Fed's Mester. President of the Federal Reserve Bank of Cleveland said that policymakers will have to do a little more on rate hikes. She pointed out that the financial markets are much more aligned with the Fed than they were previously. Her funds rate was higher than the median in December, and she still believes rates need to be slightly higher than 5%.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
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US30 fell sharply following the release of latest PCE figures and is currently trading at its lowest level since mid- December 2022. Index approaches the key support zone at 32620 pts, which is marked with previous price reactions and 200 SMA (red line). Should break lower occur, downward move may deepen towards 38.2 Fibonacci retracement of the downward wave started in January 2022. Nevertheless as long as price sits above the aforementioned support, another upward move may be launched towards the key resistance zone around 33720 pts, which coincides with 61.8% retracement and 50 SMA (green line). Source: xStation5
Company news:
Carvana (CVNA.US) shares tumbled more than 13.0% in premarket after the used car retailer reported a fourth-quarter loss of $7.61 per share, which came in well above analysts estimates of $2.28 per share, hurt by shrinking demand for pre-owned vehicles.
Carvana (CVNA.US) stock launched today's session with a massive bearish price gap and if current sentiment prevails downward move may accelerate towards local support at $7.00, which coincides with 78.6% Fibonacci retracement of the last upward wave. Source: xStation5
Adobe (ADBE.US) stock plunged over 3% as the U.S. Justice Department is reportedly planning to block the company’s $20 billion acquisition of startup Figma, according to Bloomberg.
Boeing (BA.US) shares dropped over 2.5% in premarket after the FAA announced that the planemaker temporarily halted deliveries of its 787 Dreamliners jets over a fuselage issue.
Beyond Meat (BYND.US) stock surged 12% before opening bell after producers of plant-based meat substitutes posted a narrower-than-expected loss in Q4, even with sales falling more than 20%.
Block (SQ.US) shares jumped over 6.0% in off-hours trading after the payment giant reported 40% growth in its gross profit in Q4, compared with the prior year.
