The start of a new week of trading on Wall Street brings a continuation of the dynamic declines of technology companies, which were collapsed by rising US Treasury bond yields and the hawkish stance of the Fed. Last week was the worst for the US100 index since February 2021. The 10-year U.S. Treasury bond surged to 1.8% on Monday. Tomorrow, Fed chairman Jerome Powell will speak in connection with winning a second term as US central bank governor. This week begins the period of publishing results in the banking sector. In terms of macro data releases, we will see: CPI inflation on Wednesday, PPI inflation on Thursday and retail sales and industrial production on Friday.
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US100 index chart, D1 interval. Looking at the situation in technology companies, they have broken out of the long-term uptrend limit and are now testing the 61.8% Fibo retracement. If today's D1 candle is not closed above this limit, it is possible escalation of US100 declines to the area of 78.6%. The nearest resistance remains the aforementioned limit and 50% Fibo retracement (15 570 points). Source: xStation 5
News:
Pfizer's (PFE.US) CEO announced that the Omicron variant vaccine will be ready as early as March, and the company has already started producing doses. The CEO also added that the vaccine will be effective against other variants of Covida-19, but it is unclear if it will be needed as much. However, the company will produce stocks of the vaccine due to high interest from state governments.
Pfizer (PFE.US) shares are currently consolidating between $56 and $54 per share. The closest support is determined by the 38.2% Fibonacci retracement, which is further reinforced by the EMA 50 (blue line). If the "bulls" manage to stay above these indications, a test of the level near $57 per share could be real. In case of escalation of declines, the correction may reach the 50% Fibo retracement. Source: xStation 5
Game company Zynga (ZYNG.US) rose 0 48.2% before the market opened on news that Take-Two Interactive (TTWO.US) had agreed to be acquired by the company for about $12.7 billion. The agreed price is $9.86 per share.
Medical services company Apria (APR.US) agreed to be bought out by Owens&Minor (OMI.US) for $1.45 billion in cash or $37.5 per share. The company's shares were up more than 24% before the market open.
Dell Technologies (DELL.US) shares are up more than 2.5% after Bernstein raised his recommendation to "outperform".
