US OPEN: Wall Street lower as retail sales disappoint

US indices are trading under pressure after recent data showed retail sales increased less than expected in October. Retail sales rose 0.3% last month, missing analysts' estimates of a 0.5% rise. Industrial production rose 1.1% in October 2020, rebounding from a revised 0.4% drop in September and slightly above market expectations of 1.0%. Investors are also concerned about the rising number of new COVID-19 cases and further restrictions which may hamper economic recovery. Over 1 million of new infections were reported in less than a week in the US, bring the country’s total to more than 11 million, according to data from Johns Hopkins University. New Jersey, California, Iowa and Ohio announced fresh restrictions and boost face-coverings. Meanwhile data from The Covid Tracking Project showed that coronavirus-related hospitalizations in the US reached almost 70,000

US500 erased most of its yesterday gains and index is testing local support at 3588 pts. Should current downbeat sentiment prevails then next support at 3510 pts may come into play. However if buyers will manage to halt declines here, then another upward move towards ATH at  3668 pts could  be launched. Source: xStation5

Home Depot (HD.US) stock fell over 1% in premarket despite the fact that company reported better than expected third-quarter figures. Home Depot earned $3.18 per share, 12 cents a share above estimates. Revenue also beat market expectations. Same-store sales increased 24.1%, compared to analysts' expectations of 16.9%. "The third quarter was another exceptional quarter for The Home Depot as we saw the continuation of outsized demand for home improvement projects, which has led to sales growth of more than $15 billion through the first nine months of the year". Home Depot introduced some temporary compensation enhancement programs permanent, adding about $1 billion per year to employee costs.

Home Depot (HD.US) - stock broke below 50 SMA (green line) and is testing the lower limit of the triangle pattern. Should a broke below occur, then downward move towards support at $262.73 may accelerate. On the other hand, once buyers regain control, the nearest resistance  lies at the upper limit of the triangle pattern. Source: xStation5

Walmart (WMT.US) reported third quarter earnings of $1.34 per share  well above analysts' expectations of $1.18 per share. Revenue came in above market estimates as well. Retailer giant also reported higher than expected comparable-store sales.

 

Amazon.com (AMZN.US) –  stock rose over 2% in premarket after e-commerce giant announced the launch of “Amazon Pharmacy” in the US which will allow its clients to order prescription drugs online and giving discounts to Prime members.

 

Pfizer (PFE.US) started a pilot delivery program for its Covid-19 vaccine candidate in four states, in order to prepare the logistical challenges of widespread vaccination. The Pfizer vaccine needs to be stored at -94 degrees Fahrenheit, significantly colder than most vaccines.

Berkshire Hathaway (BRKB.US) bought stocks of AbbVie (ABBV.US), Bristol-Myers (BMY.US), Merck (MRK.US), T-Mobile (TMUS.US) and Pfizer (PFE.US), according to the company’s quarterly Securities and Exchange Commission 13-F filing.