- US indices launched today's cash trading lower
- US100 is testing major support
- Apple (AAPL.US) shipments may be affected by China factory unrest
- Pinduoduo (PDD.US) surges on upbeat quarterly results
Three major Wall Street indices launched today's session roughly 0.3% lower as widespread protests against strict COVID-19 restrictions in several Chinese cities exacerbated concerns about the health of the world's second-largest economy which negatively affected market sentiment. Stocks of companies which have major production facilities in China, like Apple, were under pressure. US-listed Chinese companies, such as e-commerce giants Alibaba Group and JD.com, also took a hit. Besides concerns over China, this week investors will focus on several US economic releases, including the November NFP report on Friday, which should provide more hints regarding the condition of the US economy and Fed rate path.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
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US100 pulled back slightly on Monday, however buyers managed to defend key support at 11700 pts, which is marked with previous price reactions. As long as the index sits above this level another upward impulse towards a long-term downward trendline may be launched. On the other hand, should a break lower occur, downward impulse may deepen towards recent lows at 10460 pts. Source: xStation5
Company news:
Pinduoduo (PDD.US) ADR jumped over 13.0% in premarket after the Chinese e-commerce platform posted upbeat quarterly results as COVID-related lockdowns forced more Chinese consumers to shop online.
Pinduoduo (PDD.US) stock launched today's session with a bullish price gap and broke above the key resistance zone at $72.50 which is marked with previous price reactions. If current sentiment prevails, upward move may accelerate towards resistance at $91.40, which is marked with 61.8% Fibonacci retracement of the upward wave launched in March 2020. Source: xStation5
Apple (AAPL.US) shares dropped nearly 2.0% in premarket as the tech giant expects a production shortfall of approximately 6 million iPhone Pro units due to Covid-related unrest at contract manufacturer Foxconn's China factory.
Casino stocks - Wynn Resorts (WYNN.US), MGM Resorts (MGM.US), Las Vegas Sands (LVS.US) rose sharply in premarket after the Chinese government granted the companies provisional licenses to continue operating in Macau.
DraftKings (DKNG.US) shares plunged nearly 5.0% before the opening bell after JPMorgan downgraded the sports betting company to 'underweight' from 'neutral' as it looks less attractive compared to its competitors.
Williams-Sonoma (WSM.US) stock dropped more than 4.0% in premarket after Morgan Stanley downgraded the home retailer to 'underweight' from 'equal-weight' and expects further 18% downward move.
