- US stocks under pressure as traders weigh new Powell comments
- US Weekly Jobless Claims lowest since March 2020
- Nike (NKE.US) under pressure in China
US indices launched today’s session lower, Dow Jones fell 0.4%, while the S&P 500 and Nasdaq 100 dropped by 0.5%. Apple, Netflix, Amazon and Facebook all traded in negative territory in the premarket. Tesla stock lost another 3%. It seems that recent comments from Powell worsened investors moods. Fed chair said the economy has recovered more quickly than expected, thanks largely to stimulus and vaccines. This improvement will allow the central bank at some point to roll back some of its help, though he said that will happen “very gradually … and with great transparency.” “As we make substantial further progress toward our goals, we’ll gradually roll back the amount of Treasuries and mortgage-backed securities we’ve bought,” Powell told NPR’s “Morning Edition.” “We will very gradually over time and with great transparency, when the economy has all but fully recovered, we will be pulling back the support that we provided during emergency times.” Meanwhile, weekly jobless claims fell more than expected to a 1-year low of 684K and GDP growth for Q4 was revised slightly higher to 4.3% from 4.1%.
US500 – yesterday buyers failed to break above the downward trendline and price pulled back. Sellers managed to break below the major support zone at 3895 pts which is additionally strengthened by 50 SMA (green line) and 200 SM (red line). Currently index is approaching local support at 3850.7 pts. Should a break below occur, downward move may accelerate towards support at 3785 pts. On the other hand, if buyers will manage to halt declines, then another upward impulse towards the aforementioned 3895 pts level may be launched. Source: xStation5
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Create account Try a demo Download mobile app Download mobile appNike (NKE.US) stock fell more than 5% in premarket after the company has been criticized on Chinese social media for a statement in which the athletic footwear and apparel maker said it was “concerned” about reports of forced labor in Xinjiang. Nike also announced it does not source products from the region.
Nike (NKE.US) stock broke below the lower limit of the consolidation range in the premarket. If the current sentiment prevails downward move may be extended to the $123.03 handle which is additionally strengthened by 200 SMA (red line) or even $118.94 where November lows are located. On the other hand, if buyers manage to regain control, then upward impulse towards the lower limit of the range at $130.28 could be launched. Source: xStation5
Walgreens (WBA.US) stock fell 2% in the premarket after Deutsche Bank also labeled the stock a “catalyst call buy idea,” noting short-term issues but saying the Covid vaccine could provide a positive opportunity for Walgreens in both the near and longer-term.
Darden Restaurants (DRI.US) stock rose more than 4% in premarket after the parent of Olive Garden and other restaurant chains reported better-than-expected quarterly earnings. Company earned 98 cents per share, well above analysts’ expectations of 69 cents a share. Revenue beat estimates as well, even with same-restaurant sales falling over 26% from a year ago.
AstraZeneca (AZN.US) confirmed that updated data of its Covid-19 vaccine’s U.S. trial showed 76% efficacy, compared to 79% in a report earlier this week. The drugmaker said that the previous report, which was criticized by a U.S. safety body for using outdated data, did not include data regarding recent infections.
