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US stocks opened lower
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Weak housing market data
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GameStop (GME.US) stock surges after CEO Cohen acquired additional shares
US indices launched today's session 0.5% lower amid rising oil prices and lack of progress in the Russia-Ukraine peace talks. President Zelenskyy called western countries to put additional pressure on Russia as the conflict appears to be entering a stalemate. Investors also digest the higher possibility of a 50-bps hike in May following recent hawkish comments from several FED members. On the data front, mortgage applications dropped 8.1% , following a 1.2% decline in the previous week, as mortgage rates surged to the highest in three years. Applications to refinance a home loan declined 14.4%, while those to purchase a home edged down 1.5%. Meanwhile, the average fixed 30-year mortgage rate increased by 23 bps, the most since March 2020, bringing the rate to 4.50%, the highest since early 2019.
US2000 index pulled back after buyers again failed to break above local resistance at 2108 pts which coincides with 38.2% Fibonacci retracement of the last downward wave and upper limit of the 1:1 structure. Currently the index is approaching major support around 2035 pts, which is marked with 23.6% Fibonacci retracement. Source: xStation5
Company news:
GameStop (GME.US) stock jumped over 12.0% before the opening bell, after company’s CEO Ryan Cohen acquired 100,000 additional shares, raising his stake in the video game retailer to nearly 12.0% according to SEC filing.
GameStop (GME.US) stock launched today's session above major resistance at $119.75, which is marked with upper limit of the 1:1 structure, 23.6% Fibonacci retracement of the last downward wave. If current sentiment prevails, upward move may accelerate towards next resistance at $145.00 which is marked with 38.2% Fibonacci retracement. Source: xStation5
General Mills (GIS.US) stock rose over 1.5% in the premarket after the food producer posted upbeat quarterly results and raised its full-year guidance as demand for food at home continues to be elevated. Company reported earnings of 84 cents per share, beating analysts’ estimates of 78 cents per share, while revenue matched market estimates.
Tencent Holdings (TME.US) ADR price is expected to open lower after Chinese social media giant's revenue increased only by 8% in Q4, its slowest growth since going public in 2004.
Adobe (ADBE.US) stock dropped over 3.0% after the software maker beat its first-quarter targets, however issued a weak outlook, warning of a hit to its digital media business in Ukraine.
