- US indices launched today's cash trading lower
- US’s decided to shoot down a Chinese spy balloon
- Dell Technologies (DELL.US) joins the layoff spree
- Tyson Foods (TSN.US) stock plunges on weak quarterly results
Three major Wall Street indices launched today's session in red, with Dow Jones trading 0.50% lower, while S&P500 and Nasdaq fell 0.7% and 0.6% respectively as concerns about US-China tensions rattled sentiment. Over the weekend the USshot down what it called a Chinese spy balloon. Also traders refrained from opening new positions ahead of the Fed Powell's Tuesday speech at the Economic Club of Washington which could provide more hints regarding further steps of US central bank. Meanwhile Goldman Sachs analysts believe the S&P 500 index has a limited upside potential from current levels, given that a soft landing scenario is already priced in.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
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US100 pulled back from recent highs as latest quarterly figures from Apple, Alphabet and Amazon put pressure on the tech sector. Index pulled back sharply from the key resistance zone around 13000 pts, which coincides with 38.2% Fibonacci retracement of the upward wave launched in March 2020. As long as price sits below the aforementioned resistance, downward move may deepen towards key support at 12000 pts. Source: xStation5
Company news:
Tyson Foods (TSN.US) stock dropped nearly 5.0% in off-hours trading after the food processing giant posted disappointing results for the first quarter. Company earned 85 cents per share excluding items on revenues of $13.26 billion, well below Refinitive analysts forecasts of $1.34 per share in earnings and revenue of $13.52 billion.
Tyson Foods (TSN.US) stock launched today's session sharply higher and price is approaching key support at $59.50, where recent lows are located. Should break lower occur, sell-off may deepen towards $54.90 where 78.6% Fibonacci retracement of the upward wave started in March 2020. Source: xStation5
Dell Technologies (DELL.US) stock jumped over 1.5% in premarket following news that the computer maker is planning to lay-off over 6000 workers, which represents about 5% of its workforce due to the tough macroeconomic environment.
PayPal (PYPL.US) shares lost more than 2.5% in premarket after Raymond James downgraded the payments company to market perform from outperform and took cautious stance on its fourth-quarter earnings which will be released on Thursday after market close.
Lyft (LYFT.US) stock fell over 3.5% before the opening bell after Gordon Haskett downgraded the ride-hailing company to hold from buy as it expects that Lyft’s Q4 active rider metric could fall short of expectations.
