- US stocks tumbled
- Wall Street session to end at 6:00 pm GMT
- Drug makers stocks gain as new strain of COVID-19 appears
US indices launched today's session sharply lower as the detection of a new coronavirus variant in South Africa triggered a broad risk-off sentiment across financial markets. The Dow Jones fell nearly 2%, while the S&P 500 and Nasdaq Composite slid 1.4% and 0.9%, respectively. The United Kingdom temporarily suspended flights from six African countries due to the variant. Israel banned travel to several nations after reporting one case. Two cases were reported in Hong Kong. Belgium also confirmed a case. Friday session will be shortened because of the Thanksgiving holiday. US markets will close at 6:00 pm GMT
US30 broke below the lower limit of the wedge formation and lower bound of the 1:1 structure. If current sentiment prevails, downward move may accelerate towards support 34565 pts which coincides with 61.8% Fibonacci retracement of the last upward wave. Source: xStation5
Company news:
Emergence of the new Covid variant supports major drugmakers stocks. Moderna (MRNA.US) shares rose over 12.0% in the premarket, Pfizer (PFE.US) gained more than 5.5%, BioNTech (BNTX.US) surged over 7.0% and Novavax (NVAX.US) rose 5.0%.
Moderna (MRNA.US) stock launched today's session with a massive bullish price gap and is testing resistance at $320.85 which coincides with upper limit of the 1:1 structure, 50 SMA ( green line) and 38.2% Fibonacci retracement of the last downward wave. If current sentiment prevails, upward move may accelerate towards resistance at $387.10 which coincides with a downward trendline and 61.8% Fibonacci retracement. On the other hand, if sellers manage to regain control, the nearest support lies at $280.00 and is strengthened by 23.6% Fibonnaci retracement. Source: xStation5
Travel and airline stocks were the worst performers in the premarket. American (AAL.US), United (UAL.US), Southwest (LUV.US), Delta (DAL.US) and JetBlue (JBLU.US) stock all fell over 5% on average. Cruise stocks Royal Caribbean (RCL.US), Carnival (CCL.US) and Norwegian (NCLH.US) lost over 10%.
Meanwhile stocks that previously benefited from Covid-19 lockdown rose sharply, with Zoom Video (ZM.US) gaining nearly 8.0% in premarket trading, DocuSign (DOCU.US) rose 3%, Netflix (NFLX.US) added over 2.0% and Peloton (PTON.US) surged more than6.0%.
Tesla (TSLA.US) is planning to invest $188 million in order to increase production capacity at its Shanghai factory, according to the state-backed Beijing Daily newspaper.
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