US OPEN: Wall Street opens higher amid strong NY Empire rebound

• American equities push higher at the market open

• NY Empire well above expectations, slightly disappointing industrial production

• Nikola (NKLA.US) being examined by the SEC

Moods on global stock markets remain upbeat amid solid set of data from both China and Germany. Chinese industrial production rose 5.6% YoY in August while retail sales advanced 0.5% YoY - both numbers were ahead of forecasts. As German ZEW indices came in above market expectations as well, global equities are getting a lift today. 

NY Empire survey rebounded to 17 in September, comfortably beating market expectations, as a result S&P 500 futures caught a bid an hour before the market open. Moods were slightly damaged by disappointing industrial production data for the month of August which came in below expectations (0.4% MoM vs expected 1.0% MoM). Nevertheless, U.S. markets opened higher with S&P rising almost 1% at press time. As the FOMC gathers for a two-day policy meeting today, markets will focus on tomorrow’s monetary policy announcement. 

US500 has reached key short-term resistance level at 3,415 pts after bouncing off the 50-hour moving average yesterday (purple line). As markets could not break above the 3,415 pts twice in the past few days, the barrier remains crucial threshold. Note that it also coincides with the 200-hour moving average (orange line). Should market bulls successfully break though it, markets’ attention would focus on the 50% Fibo retracement of the recent sell-off. On the other hand, the 50-hour moving average may serve as a short-term support for now.

S&P 500 top movers at 02:37 pm BST. Source: Bloomberg

Apple’s (AAPL.US) “Time Flies” event is scheduled for today. According to Bloomberg, the name of the event refers to the Apple Watch. In fact, Apple is preparing new low-end and high-end watches, as well as a new iPad Air - they are expected to be launched this fall. On the other hand, the company will not unveil new iPhones as the Covid-19 pandemic disrupted final testing of new 5G models. Apple plans to announce its four new iPhones in October (latest iPhone release since 2011).

Apple (AAPL.US) has been trading in an upward trend despite recent correction. The 38.2% Fibo retracement of an upward impulse ($105 area) remains key support level for now. Is is worth mentioning that the mentioned support coincides with an upward trendline on the daily chart. Source: xStation5

According to Bloomberg, Nikola (NKLA.US) is being examined by the The Securities and Exchange Commission. The SEC intends to assess short-seller Hindenburg Research’s allegations that the electric-trucks maker deceived investors abouts its technology. Nikola’s stock plunged in the face of this challenging report and the vehicle producer responded in a firm way, saying that allegations were to manipulate the market.

Citigroup (C.US) plans to resume cutting jobs this week after pausing for the pandemic period. The cuts will affect less than 1% of the global workforce. However, with recent hiring, overall headcount probably will not show any declines. 

Adobe (ADBE.US) and FedEx (FDX.US) will release their financial results after today’s market close. The former is expected to report adjusted earnings of $2.41 per share on revenue of $3.16 billion. Markets anticipate that the latter will report adjusted earnings of $2.69 per share on revenue of $17.55 billion.