US OPEN: Wall Street muted as eyes turn to Fed meeting

• US stocks mostly flat
• US housing data below expectations
• Oracle (ORCL.US) stock fell sharply on weak guidance

US indices launched today’s session with mixed moods as investors focus on today's Federal Reserve monetary policy meeting and will be looking for any hints on the tapering timeline and comments regarding increasing inflation. The Fed will also release new forecasts which could indicate a possible first-rate hike penciled in for 2023. On the data front, building permits fell 3.0% from a month earlier to a seasonally adjusted annual rate of 1.681 million in May, a second straight period of decline and below analysts’ estimates of 1.73 million. Housing starts rose 3.6% to an annualized rate of 1.572 million in May, following a downwardly revised 1.517 million last month and below market estimates of 1.63 million.

US500 fell sharply during yesterday’s session however buyers managed to halt declines at the long-term upward trendline which is strengthened by the 50 SMA ( green line). A point to note is that this support zone also marks the neckline of potential head and shoulders pattern. Should the stock resume upward move, price may look towards all-time high at 4267.1 pts. On the other hand, should a break lower occur, the nearest support to watch lies at 4233 pts and 4211.8 pts. Source: xStation5 

Oracle (ORCL.US) stock fell nearly 5% in premarket despite the fact that the company posted better than expected quarterly figures. The business software company earned $1.54 per share, while analysts' expected earnings of $1.31 a share. Revenue also beat market projections. However Oracle expects that current-quarter profit will drop below consensus, as it increases investment in its cloud computing operations. 

Oracle (ORCL.US) stock launched today’s session with a bearish price gap and is currently approaching local support at $76.15 which is strengthened by 200 SMA (red line). Should break lower occur, then the downward move may accelerate towards next major support at $73.50 which coincides with 23.6 Fibonacci retracement of the entire upward move which started back in March 2020. Meanwhile, the 50 SMA  (green line) and upward trendline act as key short-term resistance. Source: xStation5

Roblox (RBLX.US) shares fell more than 7.5% in the pre-market after the video game platform reported 43 million daily active users in May, 28% more than a year earlier, however slightly lower compared to 43.3 million users recorded in April. The average amount of money spent by users decreased slightly compared to the previous year.

EBay (EBAY.US) is planning to sell its South Korean unit to retailer Shinsegae’s E-Mart unit and website operator Naver for approximately $3.6 billion, according to local media reports. E-Mart confirmed that negotiations are in progress but said that no deal had been finalized.

General Motors (GM.US) according to Reuters car producer reportedly plans to increase global spending on electric and autonomous vehicles by 30% from its most recent forecast to a total of $35 billion through 2025.