Yesterday's fall in the S&P500 index was not for nothing, and most likely, given the current confusion in the US Congress, the stock market will continue to fall. Everyone expects that tomorrow, the chairman of the Federal Reserve System will announce the specific timing and scope of the curtailment of the bond purchase program, which will rid the market of cheap money and lead to its more significant annual correction.
If this does not happen and the central bank is more loyal, as well as inclined to maintain a super-soft policy, it will be possible to observe the overlap of yesterday's gap formed as a result of a panic sale due to news about the likely default of the largest Chinese developer, which is equated with the collapse of Lehman Brothers in the United States during the global financial crisis. The week promises to be interesting, with such an introductory one.
Let's quickly run through the main and interesting movements that took place today at the premarket.
The first is the beloved Uber, whose shares rose by 5.7% at once on the premarket. It happened against the news background that the company revised its financial forecast for the third quarter upwards. It happened due to the recalculation of the number of users of the service. According to the SEC report, the company now expects $ 22.8 billion to $ 23.2 billion in the third quarter. Earlier, the company predicted this figure from 22 to 24 billion dollars.
Shares of Johnson & Johnson rose 0.8% in morning trading after the pharmaceutical company said that its booster vaccine against COVID-19 showed an effectiveness of 94%. This effect is achieved by introducing a second dose of the vaccine two months after the first. Against this background, the level of antibodies becomes four to six times higher than with a single injection.
The Apple giant and its shares rose 0.9% in the premarket after the Wall Street Journal reported that the technology company is working on iPhone features to help detect depression and cognitive decline. The Journal reports that these features will use sensor data to help detect these health problems, citing people familiar with the matter.
The oil industry also showed a slight increase in the premarket. Shares of Chevron (CVX) and Exxon Mobil (XOM) rose due to the recovery in oil prices. The growth in the range of 1.0% is not particularly pleasing after the large sale yesterday. Concerns about problems with the growth of the global economy led to a drop in oil prices and, accordingly, to a similar reaction of traders to expectations.
As for the technical picture of the S&P500, it's time to look at the level of 4,231, to which the movement may occur tomorrow. However, this will happen after the breakdown of the level of 4,300 and provided that the Federal Reserve System seriously announces plans to curtail measures to support the economy. It will be possible to say that the market has recovered a little only after traders confidently return the index above the mark of 4,425, which will open the way for 4,475 and 4,525.