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Wall Street trade sideways at the beginning of new week
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US wholesale inventories hold steady in March
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Biontech surges after better Q1 results
Wall Street starts a new week struggling for directions as traders are trying to assess the outlook for monetary policy. Economic calendar for today is light with only second-tier data scheduled for release.
The only one worth noting macroeconomic publication was the US wholesale inventories published at 3 p.m. BST time. In March, wholesale inventories in the United States remained unchanged for the second consecutive month with inventory-to-sales ratio increased to 1.4 months from the previous 1.37.Sales experienced a decline of 2.1% following a slight 0.4% increase in February. The rise in inventory levels suggests weaker sales, which can be attributed to the slowing economy. To align inventories with demand, businesses have reduced production, but this adjustment could also have a dampening effect on the overall economy.
Major US indices open slightly lower at today's session. US500 declines 0.17% to 4,144 points and US100 0.35% to 13,277 points. Regional banks extend positive sentiment after the exciting end of the previous week. Banks such as Western Alliance and Zions experienced significant increases in their stock prices last week and now prices are consolidating. PacWest sees a substantial surge of up to 12%, after announcement about dividend reduction and expressing confidence in the strength of its business on Friday.
The US500 Index, currently trading at 4,144 points, has faced resistance in its recent attempt to break above the 4200 point level. The price action indicates that the index is still within a bear market channel, which is represented by the dark blue lines on the graph. A recent bullish sentiment is weakening as it can be noticed on the MACD indicator. As a result, investors are advised to remain patience and wait for further market developments to assess the next potential trend.
Company News:
- PacWest Bancorp (PACW.US) rose 12%, extending Friday’s brisk rebound and leading gains in US regional banks, after it slashed its quarterly dividend and said business remains “sound.”
- Shares of Biontech (BNTX.US), which together with Pfizer (PFE.US) developed revolutionary mRNA vaccines during the pandemic, are gaining 5% as its Q1 report beat Wall Street analysts' estimates. The company exceeded expectations in both revenue and earnings.
- Marathon Digital (MARA.US) is down 8%, Coinbase (COIN.US) is down 4.2% and other cryptocurrency-exposed stocks declines as Binance restarted withdrawals of Bitcoin after citing congestion on the token’s blockchain for two halts in less than 12 hours.
- Six Flags Entertainment (SIX.US) shares gain 19% after the amusement park operator reported Q1 results that beat expectations. Analysts said attendance was better than expected, despite severe weather in some key locations, and that total guest spending per capita was strong.
