US Open: Wall Street loses slightly as US economy concerns rise

• U.S. indices open lower despite a 4 percentage point drop in yields on 10-year treasuries, near 4.36%
• Oil price declines curbing inflation concerns without positive impact on Wall Street
• Shares of silver producers like Sibanye (SIB.US), Silvercorp (SVM.US) and uranium miners like Uranium Energy Corp (UEC.US), Energy Fuels (UUUU.US), Cameco (CCJ.US), among others, are cheaper

The stock market is not enjoying cheaper oil today, and downward momentum continues to prevail on the largest US benchmarks. Contracts on the Dow Jones Industrial Average are down nearly 0.3%. Nearly 3% declines in silver prices are translating into sell-offs in precious metals mining companies. After yesterday's weak manufacturing ISM, it seems that the drop in yields is not a 'gift' to the stock market, but rather a 'cost' - economic activity and the consumer are weakening. So this time it's not obvious that the rise in bonds and a series of dovish signals for the Fed (mainly cheap oil) will improve sentiment, on Wall Street. US500 loses 0.3%, US100 0.4% but US30 gains 0.1%.

US macro data:

• JOLTS report: 8.05 mln vs 8.35 mln exp. and 8.48 mln previously
• US Durable goods orders: 0.6% vs 0.7% exp. and 0.7% previously
• US Factory orders: 0.7% vs 0.5% exp and 1.5% previously

Data shows that US job market is slowing, but swap market price in faster pace of 2024 Fed rate cuts after weaker JOLTS. On the other hand, durable goods orders were only slightly weaker than expected. In general, the biggest market fear for now is that US economy is slowing and may be not so resistant to Fed rates... But policymakers are still far from thinking about rates cuts. Wall Street will wait for tomorrow Services ISM data to know is inflationary pressure easing in this 'hottest' economy sector and if the answer will be 'yes', with soft reading, but still higher prices paid data we can expect even more uncertainty about stocks valuations.

US30 chart (M30 interval)

News from companies

• Shares of First Solar Inc. (FSLR) are gaining less than 1% after Morgan Stanley raised its target to $331 from $248 previously. The bank sees benefits for the solar equipment maker in rising demand for energy from artificial intelligence and increased fiscal support
• SentinelOne (S.US) are unresponsive, although Canaccord Genuity updated its rating on the digital software maker's shares, hedging the company to buy from hold, issued previously
• Target (TGT.US) loses nearly 1% after the retailer's shares were removed from Goldman Sachs' list of top U.S. stocks 

UEC.US (D1 chart)

Shares of UEC are losing more than 6% today and are one step closer of the SMA200 (red line) support zone test, first time since July 2023.

Source: xStation5