US OPEN: Wall Street to open higher after two-day sell-off

2:47 PM February 26, 2020
  • Wall Street futures point to a green open

  • Russell 2000 at the 200-session moving average

  • Beyond Meat (BYND.US) to open higher on cooperation with Starbucks (SBUX.US)

Wall Street is set to open higher on Wednesday in an attempt to recover from recent, massive sell-off. Futures on all major US indices point to a green open with Nasdaq and Russell 2000 leading. However, traders should keep in mind that the US stock market opened higher yesterday but still managed to finish the day 3% lower.

Russell 2000 (US2000) tries to halt declines at the 200-session moving average (1575 pts). The index broke below the key price zone at 1600 pts handle and may be heading for a target of the double top pattern at around 1515 pts. Note that this level is also the lower limit of the price zone that saw a few price reactions from March to October 2019. The closest resistance zone can be found at 1600 pts. Source: xStation5

Lowe’s (LOW.US) reported earnings for the fiscal-Q4 2020 (ended January 31) ahead of today’s session open. The US retailer generated net sales of $16.03 billion, marking a +2.4% YoY increase (exp. $16.15 billion). Adjusted EPS stood at $0.94 against expected $0.91. Comparable sales increased 2.5% YoY, weaker than expected 3.7% YoY. Company expects full-year sales in the next fiscal year to increase 2.5-3% while comparable sales should grow 3-3.5%. Full-year adjusted EPS is in the $6.45-6.65 range.

Tesla (TSLA.US) pulls back in premarket trading after the National Transportation Safety Board said that autopilot was a probable reason behind the fatal crash in California in 2018.

Shares of Beyond Meat (BYND.US) are trading over 7% higher in premarket. Surge came after Starbucks (SBUX.US) announced that its stores in Canada will begin serving artificial meat products from Beyond Meat starting from March.

Following a steep surge in price at the beginning of the year, shares of Beyond Meat (BYND.US) started to trade within a range. The stock pulled back to the lower limit of the range this week as the broad market was in a freefall mode. However, thanks to an announcement from Starbucks, shares are set to launch today’s session near the midpoint of the range ($118.50). Source: xStation5

Salesforce.com (CRM.US) informed that Keith Block, co-CEO of the company, has resigned from the role. The move leaves Marc Benioff as the company's sole CEO. Benioff also serves as Chairman of the Board. Block, however, will remain at the company and serve as an advisor to the Chief Executive Officer.

Walt Disney (DIS.US) also announced changes at top positions. The US entertainment company said that Bob Chapek was named Chief Executive Officer with immediate effect. Robert A. Iger will assume the role of Executive Chairman through 2021.

Nike (NKE.US) declines in premarket trade after downgrade at HSBC. The Bank lowered the rating for the stock from “buy” to “hold”. Price target was set at $112. 

Nike (NKE.US) dropped below the support zone at $96.50. The stock may remain under pressure today following a downgrade at HSBC. Should it be so, the first support to watch can be found below $90 handle. The final support - lower limit of the Overbalance structure (yellow box) can be found at $85.50. Source: xStation5 

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