US OPEN: Wall Street mixed on weak tech earnings

• US indices launched today's cash trading mixed
• US100 dragged down by Alphabet and Microsoft
• Spotify (SPOT.US) stock plunges on mixed quarterly results

Major Wall Street indices launched today's session in mixed moods as disappointing results from Microsoft and Alphabet put pressure on the tech sector and raised concerns about slowing economic growth. Dow futures rose 0.2%, and those tied to the S&P 500 and Nasdaq dropped 0.9% and 2.2%, respectively. On the data front, US trade gap on goods widened to a three-month high of $92.2 billion in September, compared to a $87.3 billion deficit in August. Building permits rose 1.4%MoM to an annualized 1.564 million in September , in line with preliminary estimates.

Yesterday US30 managed to break above resistance at 31760 pts, which is marked with 38.2% Fibonacci retracement of the last downward wave. If bulls manage to uphold recent momentum, another upward move may be launched towards local resistance at 32620 pts which is marked with previous price reactions and 200 SMA (red line). On the other hand, breaking below the aforementioned zone at 31760 pts, may trigger another downward move. In such a scenario the nearest support to watch lies at 30580 pts, where 23.6% retracement is located. Source: xStation5

Company news:

Spotify (SPOT.US) shares fell over 6.0% in premarket after the streaming service posted a wider-than-expected quarterly loss, while revenue  slightly topped market estimates, while its monthly active user total exceeded analysts’ projections.

Spotify (SPOT.US) rose sharply on Tuesday and broke above local resistance at $96.50 which is marked with 38.2% Fibonacci retracement of the last downward wave. However market sentiment worsened following release oof disappointing quarterly  results and price returned below the aforementioned level. If current sentiment prevails support at $89.40 may be at risk. Source: xStation5

Bed Bath & Beyond (BBBY.US) shares tumbled 10.0% on Wednesday, after the retailer appointed interim CEO Sue Gove to the position permanently. Company is undergoing a turnaround process as it seeks to win back customers and grow sales with the key holiday season ahead.

Boeing (BA.US) stock fell 1% in the premarket after reporting an unexpected quarterly loss and revenue that fell below Street forecasts. Nevertheless the company upholds its yearly cash flow estimates despite difficulties in elevating commercial jet production.

Alphabet (GOOGL.US) shares plunged more than 6.5% in premarket after the Google parent posted weak ad sales as advertisers lowered their spending amid worsening macroeconomic environment.

Microsoft (MSFT.US) stock lost 6.6% before the opening bell after the software giant expects decreasing PC sales and revenue growth in its closely watched Azure cloud-computing business in the current period from the prior quarter.

Visa (V.US) stock rose 2% in premarket after the credit card giant posted upbeat quarterly results as payment volumes jumped.

Harley-Davidson (HOG.US) stock jumped nearly 4.0% after the motorcycle maker recorded a 38% increase in quarterly profit as higher shipments and strong pricing offset price pressures.

Kraft Heinz (KHC.US) stock added over 3.0% in premarket after the food producer beat third quarter sales estimates as it successfully raised prices. That helped offset reduced demand.