- US indices launched today's cash trading lower
- Core PCE inflation above expectations
- Nike (NKE.US) stock sinks as inventories level increase
- Rent-A-Center (RCII.US ) stock tumbles on weak guidance
Wall Street indices launched another session lower, as the core PCE inflation report closely watched by the Fed showed that prices continued to increase at a rapid pace. Moods additionally worsened after Fed Vice Chair Brainard stressed the need to tackle inflation and the importance of not shrinking from the task until it is finished. All three benchmarks are now on track for a sharp weekly, monthly and quarterly decline.
Despite overall negative sentiment US100 manages to stay above key support at 11200 pts, which is marked with lower limit of the 1:1 structure and previous price reactions. As long as the index sits above the aforementioned level, upward correction may be launched. The first resistance to watch lies at psychological 12000 pts level. However, if sellers manage to push index lower, then next support to watch is located around 10460 pts and is marked with 61.8% Fibonacci retracement of the upward wave launched in March 2020. Source: xStation5
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Rent-A-Center (RCII.US) stock plunged over 18.0% in the premarket after the rent-to-own company lowered its financial outlook for the current-quarter as worse economic conditions have impacted retail traffic and customer payment patterns.
Rent-A-Center (RCII.US) stock launched today's session with a huge bearish price gap, below the lower limit of the recent consolidation at $19.00 which now acts as resistance. If current sentiment prevails, downward move may accelerate towards support at $11.70, where pandemic lows are located. Source: xStation5
Nike (NKE.US) stock fell 13% in the premarket despite the athletic footwear and apparel maker upbeat quarterly results. However 44% increase in inventories negatively impacted investors' moods.
Micron (MU.US) shares rose 1.5% before the opening bell, even despite mixed quarterly results and weak guidance. However some analysts believe the ongoing inventory correction was only a short-term hurdle and that the bottom is near for the companies from the semiconductor segment.
Tesla (TSLA.US) shares rose slightly in premarket as the company is set to unveil a prototype humanoid robot at the company’s “AI Day”. Investors also expect that Elon Musk will provide more updates on long-delayed self-driving technology.
