- US indices launched today's cash trading lower
- US100 tests downward trendline
- Chinese stocks in US rise as Beijing eases some covid restrictions
Three major Wall Street indices launched today's session roughly 0.50% lower as investors digested Friday’s NFP data and now await a slew of economic data to gauge the economy's health and the Fed's next move. Today investors will focus on the ISM services report which is expected to ease in November as tighter financial conditions dented business activity.
S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5
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US100 is still unable to break above the long-term downward trendline therefore pull back towards major support at 11700 pts cannot be ruled out. If negative sentiment prevails downward move may even deepen towards recent lows at 10460 pts. On the other hand should buyers regain control and break above the trendline occur, an upward move may accelerate towards key resistance at 13000 pts which is marked with previous price reactions and 38.2% Fibonacci retracement of the upward wave launched in March 2020 . Source: xStation5
Company news:
Stocks of Chinese companies listed in the US rose sharply in premarket as Beijing will reportedly eased Covid restrictions in major cities from tomorrow. As a result Bilibili (BILI.US) stock jumped 16%, while shares of Baidu (BIDU.US) and Pinduoduo (PDD.US) surged more than 5%. Alibaba (BABA.US) added over 4%.
Bilibili (BILI.US) stock launched today's session with a bullish price gap and for the first time since July 2021 is trading above 200 SMA (red line). If current sentiment prevails, upward move may extend towards next resistance at $33.25 which is marked with previous price reactions. In case of a shift in market sentiment another downard impulse towards recent lows at $7.90 may be launched. Source: xStation5
Tesla (TSLA.US) fell over 4% in premarket after warning about a cut in the December output of the Model Y at its Shanghai plant.
Domino’s Pizza (DPZ.US) rose 1% before the opening bell after BTIG upgraded the pizza chain to buy from neutral, as it expects margins are set to rebound in 2023 because of higher menu pricing.
Verizon Communications (VZ.US) stock dropped over 1.0% in off-hours trading after the telecoms giant said Manon Brouillette, CEO of the company's Consumer Group resigned after 11 months.
Apple (AAPL.US) stock rose 0.7% after the news that the tech giant is planning to move production out of China, according to the Wall Street Journal.
