- US indices launched today's cash trading lower
- Microsoft (MSFT.US) under pressure amid weak financial outlook
- Boeing (BA.US) plunges on weak quarterly results
Three major Wall Street indices launched today's session deeply in red, with Dow Jones trading 0.70%, while S&P500 and Nasdaq fell 1.15% and 1.70% respectively as disappointing earnings reports from major US companies including Microsoft and Boeing added to worries about a possible recession. Later on market attention will focus on Tesla and IBM, which will announce their earnings after the close.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
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US30 pulled back sharply from major resistance at 33720 pts, which coincides with 61.8% Fibonacci retracement of the downward wave launched in January 2022 and 50 SMA (green line). If current sentiment prevails downward move may deepen towards support at 32620 pts. Source: xStation5
Company news:
Boeing (BA.US) stock fell over 2.0% before the opening bell after the aircraft maker posted weaker than expected quarterly earnings, despite a demand recovery. The company cited labor and supply shortages for the disappointing numbers.
Boeing (BA.US) stock launched an impressive upward correction in Q4 2022, however rally stalled around support at $207.00, which coincides with 38.2% Fibonacci retracement of the upward wave launched in March 2020. As long as price sits around this level, another upward impulse may be launched, however recent quarterly results put further selling pressure. Source: xStation5
Microsoft (MSFT.US) stock dropped nearly 3% after the Windows software maker posted mixed quarterly results and issued a weak revenue forecast for Q1 2023. The tech bellwether said new business growth slowed in December, including within its crucial Azure segment.
AT&T (T.US) shares jumped 2.4% in premarket after the telecommunications giant’s posted better-than-expected fourth quarter earnings and increase in subscribers with a muted near-term outlook.
Alphabet (GOOGL.US) - analysts see limited financial risk from the Justice Department suing the tech giant to break up its ad-technology business, as the whole procedure will most likely take several years to play out. On the other hand, Evercore believes that regulatory risk could continue to put pressure on its stock which fell over 2.0% in premarket.
