- US indices launched today's cash trading lower
- Upbeat claims figures and hawkish remarks from FED Mester put pressure on stocks
- Bed Bath & Beyond (BBBY.US) stock plunges after weak quarterly figures
Major Wall Street benchmarks launched today's session more than 1.0% lower, giving away a large chunk of yesterday's gains as investors digest another slew of macroeconomic data and hawkish comments from FED members. A hotter-than-expected inflation reading, with core PCE prices for the second quarter above expectations, raised concerns that inflation is much more persistent. On top of that, upbeat claims figures indicate that the labour market remains resilient and may withstand additional rate hikes. Further tightening was confirmed by Fed Mester, which said policymakers are not at a point where they should consider halting rate hikes. In her opinion inflation is expected to fall, but we will need a higher Fed funds rate to achieve that.
US2000 rose sharply on Wednesday, however buyers failed to uphold momentum and index fell below 1700 pts level, erasing majority of yesterday's gains. If negative sentiment prevails, downward move may deepen towards major support at 1650 pts, where lows from June 2022 are located. On the other hand, if bulls manage to regain control, then upward impulse may be launched towards resistance at 1790 pts, which is marked with previous price reactions. Source: xStation5
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Bed Bath & Beyond (BBBY.US) stock fell over 4.0% in premarket after the housewares retailer reported a wider-than-expected quarterly loss and 28.0% drop in sales. Gross margins fell as the company moved to clear out excess inventory. Company’s current liquidity is $850 million, following agreements for more than $500 million in new financing.
Bed Bath’s (BBBY.US) shares are down about 55% so far this year. Buyers managed to defend key support at $4.00, where pandemic lows are located, however only a break above major resistance of $14.00 may lead to trend reversal. Until then the main sentiment remains bearish. Source: xStation5
Apple (AAPL.US) stock dropped over 2.0% in premarket after Bank of America downgraded tech giant to ‘neutral’ from ‘buy’, as it believes that decreasing discretionary spending will hurt its quarterly results.
Amazon (AMZN.US) stock lost over 1.5% in premarket after the e-commerce giant announced salary increase for its warehouse and transportation workers, which may cost approximately $1 billion over the next year.
CarMax (KMX.US) stock plunged over 16.0% before the opening bell following weak quarterly figures as “affordability challenges” had a negative impact on sales.
