US Open: Wall Street open session flat, despite favorable claims reading

• Wall Street futures stars today's session flat, in mixed sentiments
• Jobless claims slightly above forecasts
• Rises in Chinese stocks dominate U.S. stock markets
• Wedbush analysts raised recommendation on Microsoft (MSFT.US)
• Northcoast Research bullish on WisdomTree (WT.US)

Unemployment claims were by far the main macro publication of the day today, and the reading seemed favorable for short-term stock market sentiment. The number of claims rose slightly, giving a signal towards the fact that the US labor market is weakening, but at a pace that allows us to expect a soft landing of the economy. However, since the gains after the reading proved to be short-lived, this could be a signal of sellers taking advantage of higher liquidity and demand for distribution. US500 gains a symbolic 0.03%, US100 traded flat.

• US jobless claims at 218k, with 210k expected and the previous level of 205k. 
• US continued jobless claims came in at 1.875 million, in line with expectations, vs 1.865 million earlier. 

The biggest declines today are in oil and gas stocks, which are dragging on the S&P 500. Source: xStation5

US500 chart

On Wall Street's main index, we have seen a continuation of gains in recent times, which slowed down at the beginning of today's session. The US500 has gained nearly 18% over the past two months. After breaking through the level of 4800–4820 points, which is near the historical all-time-highs, US500 contracts consolidate. The closest, short-term support levels are the 4800 and the 4600 zone, supported by previous price reactions.

Source: xStation 5

US trade balance. Source: US Census Bureau

U.S. unemployment claims. Source: BLS, XTB Research, Macrobond

News from companies

• Shares of Bitcoin mining companies, including Marathon Digital (MARA.US) and Riot Platforms (RIOT.US), are gaining, in anticipation of Bitcoin's continued rise and next year's, cyclical halving of the major cryptocurrency
• Microsoft Corp. (MSFT.US) gains after Wedbush Securities raised its target price for the software company to $450 from $425, maintaining an 'overweight' rating
• Penn Entertainment (PENN.US) gains as WSJ reported that activist shareholder HG Vora Capital Management is in talks with the casino gaming company about placing new directors on the companies' board of directors
• WisdomTree Inc. (WT.US) is gaining more than 2% after analysts at Northcoast Research upgraded the stock to 'buy' from its previous 'neutral' rating. In a research note, they said the fund's shares missed the recent equity market rally, at a time when its assets under management (AUM) are likely to rise more than expected, at the end of Q4.

Looking at Microsoft shares on H4 interval, we can see that if current upward structure will be maintained, there is a potential for a downward correction towards $340 per share, where we see the 23.6 Fibonacci retracement of the 2022 upward wave. The RSI indicator is slightly above neutral levels, giving plenty of room for a possible decline or increase in a shares price. Source: xStation5