- US indices launched today's cash trading higher
- Starbucks (SBUX.US) stock plunges after analyst downgrade
- Nike (NKE.US) and FedEx (FDX.US) shares rally after earnings results
Three major Wall Street indices launched today's in upbeat moods, with Dow Jones trading 0.90% higher, while the S&P 500 and Nasdaq rose 0.60% and 0.20% respectively as quarterly figures from two major bellwethers Nike and FedEx raised hopes that corporate earnings may not be so gloomy as initially expected even despite ongoing recession concerns. Investors now await existing home sales and consumer confidence data at 3:00 PM GMT.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
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US500 extends yesterday’s rebound from major support at 3800 pts, which coincides with 38.2% Fibonacci retracement of the upward wave launched in March 2020. If current sentiment prevails, index may move further towards psychological resistance at 4000 pts, however before that happens, buyers need to overcome 100 EMA (purple line), which served as both a support and resistance in recent weeks. Source: xStation5
Company news:
Starbucks (SBUX.US) stock dropped over 1.0% after Jefferies downgraded the coffee chain to ‘hold’ from ‘buy’, saying the stock’s 40% rally from its May lows leaves little upside potential. Also future performance may be impacted by a pullback in consumer discretionary spending.
Starbucks (SBUX.US) stock pulled back recently after an impressive rally. Nevertheless as long as price sits around major support at $97.00, there is a chance that upward move may resume. However if break lower occurs, next major support to watch lies at $94.25 and is marked with lower limit of the 1:1 structure and 50 SMA (green line). Source: xStation5
Nike (NKE.US) shares jumped over 12.0% in premarket after the sportswear retailer reported upbeat quarterly results and lifted its full-year financial outlook, thanks to robust demand from North American clients.
FedEx (FDX.US) stock rose over 4.0% in off-hours trading despite mixed quarterly figures. Company aims to improve profitability by parking planes, closing offices, stopping rural Sunday delivery, and layoffs in freight division.
Tesla (TSLA.US) stock gained over 1.5% before the opening bell, attempting to erase some part of yesterday's heavy losses, on news that EV maker will launch another round of layoffs and a hiring freeze in the coming quarter.
