- Wall Street indices open lower
- US100 halts recovery move
- Cava Group drops 8% after largest shareholder files to sell shares
- SMCI drops 7% after Hindenburg took short position
Wall Street indices launched today's trading lower - S&P 500 opened 0.2% lower, Dow Jones traded 0.1% down at session launch, Nasdaq declined 0.4% and small-cap Russell 2000 opened 0.8% lower. This comes on the back of a rather mixed trading in Europe, where indices from the region struggle to find common direction.
Economic calendar for today's US trading is light. Traders will be offered Conference Board consumer confidence index for August at 3:00 pm BST as well as private API report on US oil inventories at 9:30 pm BST.
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Source: xStation5
Recent recovery rally on Nasdaq-100 futures (US100) has been halted. Taking a look at US100 chart at H4 interval, we can see that the index failed to break above the 20,000 pts resistance zone and has begun to move lower. However, while a sequence of lower highs and lower lows can be spotted during the ongoing pullback, its size is not worrying yet. The lower limit of the market geometry, the largest downward correction in the recovery rally, can be found at 19,120 pts, slightly above 50% retracement of the July's decline. As long as the index stays above it, short-term trend remains bullish, at least in theory.
Company News
JD.com (JD.US) is trading higher after announcing new buyback programme. Company said that it will repurchase own shares worth up to $5 billion over the next 36 months through August 2027. The programme is effective from September this year and will include both shares and ADRs (US-listed shares).
Cava Group (CAVA.US) launched today's trading lower after Artal International, the largest shareholders of the company, filed to sell 6 million of Cava's shares. Moreover, a number of Cava Group executives also filed to sell part of their stock in the company.
Paramount Global (PARA.US) drops after it was reported that Edgar Bronfman Jr. withdrew his offer to purchase the company. Edgar Bronfman Jr. placed a $6 billion bid for Paramount to challenge bid placed by Skydance Media. As Skydance remains the only party in the bidding war, the company is likely to acquire Paramount now.
Super Micro Computer (SMCI.US) launched today's trading with a big bearish price gap after Hindenburg Research said it took a short position on the company and alleged that SMCI may have engaged in accounting manipulation.
Cava Group (CAVA.US) launched today's trading with a big bearish price gap after it was reported that company's largest shareholder as well as several executives filed to sell Cava's shares. This comes after a strong rally that sent company's shares over 50% higher over the past 3 weeks. Source: xStation5
