- US indices launched today's cash trading lower
- Mixed results from major US banks
- Pfizer (PFE.US) stock plummets after Wells Fargo downgrade
Three major Wall Street indices launched today's session slightly lower, following mixed results from two big US banks. Dow Jones is trading 0.35% lower, while the S&P 500 and Nasdaq fell 0.10% and 0.15% respectively as investors digest weak results of Goldman Sachs and upbeat performance of Morgan Stanley and try to assess how corporate America performed against macro headwinds. Last week, JPMorgan, Bank of America, Citigroup, and Wells Fargo turned in mixed Q4 figures, with US largest banks reporting better-than-expected numbers but issuing recession warnings. Concerns over deteriorating global macroeconomic environment are also seen during the World Economic Forum which started in Switzerland. A survey released at the Davos summit showed that two-thirds of private and public sector economists expected a global recession this year, with about 18% considering it “extremely likely”. On the data front, the NY Empire State Manufacturing Index fell to -32.9 in January , the lowest reading since May of 2020, from -11.2 in December, and well below analysts' estimates of -9.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
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US100 broke above major resistance at 11500 pts last week and as long as price sits above, upward move may accelerate towards long-term downward trendline which coincides with 200 SMA (red line). Break above these hurdles, would indicate a shift of main sentiment to bullish. On the other hand, if sellers manage to regain control, then another downward impulse could be launched towards October 2022 lows at 10460 pts, which is marked with previous price reactions and 61.8% Fibonacci retracement of the upward wave started at the beginning of pandemic. Source: xStation5
Company news:
Pfizer (PFE.US) shares dropped nearly 2.0% after Wells Fargo downgraded the pharmaceutical giant to ‘equal weight’ from ‘overweight’, due to uncertainty over its COVID business.
Pfizer (PFE.US) stock pulled back below local support at $46.70, which coincides with 61.8% Fibonacci retracement of the last upward wave. If sellers manage to uphold recent momentum, downward move may deepen towards next support at $44.35. Source: xStation5
Goldman Sachs (GS.US) shares dropped 2.8% in off-hours trading after the company reported a larger-than-expected 69% decline in Q4 profit due to heavy losses in its investment banking unit and asset management revenue.
Morgan Stanley (MS.US) stock jumped 3.6% after the major US bank posted solid quarterly results, as profits from the trading department offset the hit from sluggish dealmaking.
Alibaba (BABA.US) stock rose 0.505 in premarket after WSJ reported that activist investor Ryan Cohen built a stake in the Chinese e-commerce giant and is pushing the company to increase its stock buyback program.
Roku (ROKU.US) stock fell over 1.2% before the opening bell after Truist downgraded the company to a hold from a buy rating as a worsening macroeconomic environment may have a negative impact on advertisement which accounts for a large share of revenues.
