• Amount of the infected cases in the US continue to rise
• US might become new epicenter of the coronavirus, accordingly to WHO
• Nike (NKE.US) share price soared
After yesterdays massive rally, today US indices opened in mixed moods. The US Senate is still voting today on the stimulus package, which was initially agreed between the two sides yesterday. The bill will still have to pass the House of Representatives. However uncertainty remains on the markets as investors are concerned whether the package will be enough to offset the economic impact of the coronavirus outbreak, especially that WHO announced the US might become the next epicenter of the pandemic as the number of infections grows rapidly and almost half of the states have imposed lockdown measures to near 100 million citizens. Therefore traders should expect another volatile session.
The Dow Jones Industrial Average opened 1.1% higher. The S&P 500 opened by 0.2% while NASDAQ Composite fell by 0.1%.
S&P500 (US500) is testing local resistance level at 2505 pts. A sustainable move above this level may trigger further upside move towards the next resistance zone located at 2722.6 pts. Source: xStation5. Target
(TGT.US) – decided to withdraw it’s financial guidance, due to the concerns regarding spread of the coronavirus. The big-box retailer announced that food and household goods sales are increasing, but profits may be lower due to the higher costs for staffing and cleaning stores. The company also seen a drop-off in apparel and accessories sales. Target gives up plans for store remodels, delaying openings of many small-format stores.
Target (TGT.US) – share price broke below 200 MA(red line) and is testing major support level at $98.58 per share. In case the market's plunge continues to gather pace, the stock may be set to test support at $87.63. Local resistance is located at $104.20. Source:xStation5
(NKE.US) – company reported better than expected revenue figures. Also quarterly profit of 78 cents per share, exceeded forecasts of 59 cents a share. The athletic footwear and apparel announced that the market situation in China is improving after the coronavirus outbreak.
Nike (NKE.US) – share price went sharply higher based on quarterly profits news. The stock managed to break above major resistance level at $67.95 per share which was supported by 200 MA (red line). If the bullish bias continues, then the price may test next resistance level located at $77.30. Source:xStation5
US OPEN: Wall Street opens slightly higher after massive rally
Mar 25, 2020