- Wall Street opens lower
- US500 makes another attempt at 4,350 pts support
- Coty drops after share sale announcement
Wall Street indices launched today's cash session lower with S&P 500, Dow Jones and Nasdaq opening 0.4-0.6% lower. Small-cap Russell 2000 was the top performer at the opening, dropping only 0.2%. However, it should be noted that yesterday's opening on Wall Street was similarly dismal and US indices managed to recover losses later during the day.
There are a number of economic releases from the United States scheduled for 3:00 pm BST today, including Richmond Fed index, Conference Board consumer confidence and new home sales data. However, unless major deviations from expectations are reported, market reaction may be limited to FX.
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Source: xStation5
S&P 500 futures (US500) are trading lower today and sellers are making another attempt at breaking below the 4,350 pts support zone. It should be noted that the attempt made yesterday turned out to be a failure and US index recovered all of the losses later during the day. However, should we see a break below 4,350 pts area, there is still a chance for bulls. A key support can be found lower at 4,235 pts and is marked with 200-session moving average (purple line) as well as the lower limit of the Overbalance structure. A break below this hurdle would hint that a bearish trend reversal has occurred and a deeper decline may be looming.
Company News
Coty (COTY.US) is trading lower at the beginning of today's Wall Street cash session. Company announced that it had submitted an application to dual list its shares on the Paris Stock Exchange. On top of that, the company also announced that it will offer 33 million shares globally. Proceeds from the offering will be used to pay down debt and invest into business.
Fisker (FSR.US) trades higher after the company said that it plans to ramp up deliveries of its Ocean SUV to 300 per day later this year. This comes on top of the announcement that 5,000 Ocean SUVs have been built already. Fisker has so far delivered 900 Ocean SUVs to clients in Europe and the United States.
Analysts' actions
- DraftKings (DKNG.US) upgraded to "overweight" at JPMorgan. Price target set at $37.00
- Flowserve (FLS.US) upgraded to "buy" at Jefferies. Price target set at $50.00
- Olin (OLN.US) downgraded to "equal-weight" at Wells Fargo. Price target set at $50.00
- Snap (SNAP.US) rated "reduce" at HSBC. Price target set at $7.50
Coty (COTY.US) launched today's trading lower, following the announcement of a big stock offering. A potential head and shoulders pattern can be spotted on the chart and should declines deepen and the stock drops below neckline in the $10.50 area, a plunge to as low as $7.65 could follow (textbook range of the pattern). Source: xStation5
