US OPEN: Sell-off on Wall Street continues

• US stocks opened lower
• Weak Philly Fed and claims readings
• Kohl’s (KSS.US) stock under pressure as inflation weighs on profits

US indices launched today's session lower as another set of disappointing quarterly results and weak macroeconomic data weigh on market sentiment. The US labor department said that Americans filing new claims for unemployment benefits increased to 218 thousand last week, above market estimates of 200k, while the Philadelphia Fed Manufacturing Index in the US dropped sharply to 2.6 in May. Both readings seem to confirm that the US economy may enter a period of slowdown.

US100 managed to halt declines around major support at 11700 pts and today buyers became more active after the launch of the US session. Index is currently testing local resistance at 12000 pts. If buyers manage to uphold current momentum, upward move may accelerate towards major resistance at 12535 pts, which is marked with previous price reactions and upper limit of the 1:1 structure. Source: xStation5

Company news:

Kohl’s (KSS.US) stock dropped more than 3.0% in premarket after one of America's biggest retailers  reported mixed quarterly earnings and, similar to Walmart and Target, warned that profits are negatively affected by rising prices. Company earned 11 cents per share, well below analysts’ estimates of 70-cents per share, while revenue beat estimates.

Kohl’s (KSS.US) stock broke below major support at $44.50 which is marked with lower limit of the 1:1 structure and 38.2% Fibonacci retracement of the upward wave launched in March 2020. If current sentiment prevails, next support at $31.60 may be at risk. Source: xStation5

Ford (F.US) stock fell  over 1.0% after a major US car producer announced it is recalling 39,000 SUVs after reports of 16 fires and told owners to park outside and away from structures until a fix is completed.

Cisco (CSCO.US) stock plunged nearly 12.0% in pre-market after the networking equipment maker lowered its full-year forecast due to China lockdowns and the Ukraine conflict.

Synopsys (SNPS.US) rose over 4.0% in premarket trading after the design automation software company posted strong profit and revenue figures for its latest quarter and issued an upbeat forecast.