US Open: Wall Street Plunges as Year-End Profit-Taking Continues

• American equities open in the red, though are still heading for a winning week
• US Wholesale Inventories dip unexpectedly
• Amedisys and UnitedHealth merger deal still in the game

Wall Street started Friday’s session in low spirits, with all major indices giving up some ground at the end of a largely successful month. Nasdaq is down 2%, S&P500 loses 1.3%, small-cup Russell 2000 retreats 0.6% and Dow Jones trades 0.7% lower.

US Wholesale Inventories unexpectedly decreased by 0.2%, contrary to the forecasted 0.1% increase, signaling a faster turnover of goods and potentially higher consumer demand. While this drop could be bullish for the USD, it also raises concerns about supply chain efficiency and its broader impact on the economy.

US100 (D1)

The Nasdaq, represented by the US100 contract, continues its pullback after hitting the ATH resistance around 22111. Although the momentum of the Santa Claus Rally may be over, the tech heavy index is set to finish the year with a sizeable 30-percent gain. The index may bounce back from its most recent support of about 21400, which is currently leveled at the 30-days EMA. The bearish reversal might be possible, should the profit-taking continue pushing the index down below 21250 mark (aka post-FOMC low). RSI remains neutral at around 55, while MACD histogram still suggests weakening momentum.

Source: xStation5

Corporate news:

• Amedisys (AMED.US), UnitedHealth (UNH.US): home-care provider and health insurer have extended the deadline for their $3.3 billion merger to 2025, following legal challenges from the U.S. Department of Justice (DOJ) and several states, which are concerned the deal could reduce competition in the home health services market. The extension grants the companies until 10 days after the final court decision or December 31, 2025, to close the deal, and includes a regulatory break fee of up to $325 million if required asset divestitures are not made by May 1. Despite the scrutiny, Amedisys shares rise 4.15% at the start of the session.
• Arena Group Holdings: the media company has received approval for its plan to regain compliance with NYSE American's listing standards, with a deadline to achieve full compliance by April 2026. The owner of media brands like TheStreet and Parade Media, was facing challenges in meeting stockholder equity requirements but has shown strong revenue growth of 45% over the past year. Arena Group is also undergoing leadership changes, including the appointment of a new CEO and Principal Financial Officer, while dealing with a legal dispute over alleged theft of proprietary technology. Arena Group's shares are adding 9%.
• BioNTech (BNTX.US): the company reached two settlements over royalty payments related to its COVID-19 vaccine, agreeing to pay $791.5 million to the U.S. National Institutes of Health (NIH) and $467 million to the University of Pennsylvania (Penn). These payments resolve a default notice from the NIH and a lawsuit from Penn, which claimed BioNTech underpaid royalties for using foundational mRNA technology. The settlements include a revised license agreement and an understanding that Pfizer will reimburse BioNTech for a portion of the royalties, but no admission of liability was made by the company. BioNTech is currently up 0.6%.
• Progyny (PGNY.US): the fertility medication provider’s stock adds 11% following a purchase of 150k shares worth of $2.2 mln, made by the company Executive Chairman David J. Schlanger.