Equities report: Pessimistic investors moving away from riskier assets?

After two consecutive weeks moving lower, the US indexes are so far in positive territory this week, keeping trader expectations high. Analysts argue that pessimistic investors are moving away from riskier assets like stocks, as a result of fears of the economy moving into a recession. Even though the recession has not been confirmed yet, US indexes have fallen to new lows very recently, maintaining the heavy bearish sentiment. In this report we will identify stock movers that stood out from our point of view in the past days. As a conclusion, one of the stocks selected will also be used for our technical analysis, keeping traders informed on important levels to watch.

Walmart investing in AI

Walmart Inc. (#WMT) the top US retail stores chain received attention on Tuesday as it climbed the list of the top gainers of the Dow Jones advancing by +3.28% and closing the normal trading session at $122.17. On a year to date basis, Walmart Inc. (#WMT) is down -15.56%, whiles its 52-week price range is between $117.27 and $160.77. On Tuesday, Walmart officially announced it holds a stake in Symbotic Inc. the artificial intelligence supply chain technology company. Walmart’s involvement with Symbotic Inc. has been gradual and during the end of May 2022 they jointly announced an agreement to implement Symbotic’s robotics and software automation platform in all 42 of Walmart’s regional distribution centers over the coming years. The news may have excited traders possibly contributing to the daily gains Walmart’s share observed. Walmart’s partial ownership in Symbotic Inc. may have been recognized after the second became a publicly traded company on the Nasdaq Stock Market under the ticker symbol “SYM” on June 8, 2022.

Nike to announce earnings on the 27    of June

NIKE Inc. (Nike) the most popular sports footwear, clothes and equipment apparel was also in the gainers list of the Dow Jones on Tuesday, gaining +1.25% and closing the normal trading session at $108.68. On a year to date basis, Nike is down -34.79%, while its 52-week price range is between $103.46 and $179.10. As market analysts are building up a sentiment for Nike’s Q4 2022 earnings results, coming up on the 27th of June we tend to come across a number of straight forward but also contradicting opinions. According to its Q3 2022 earnings results, despite Nike managed to increase its net revenues by 5% compared to the prior year, it saw declines in footwear and apparel sales in Greater China, which is considered a big market for the company. Various reports seem to highlight the possibility of Nike continuing to lose sales in China for the Q4 2022, as lockdowns imposed due to Covid-19 restrictions may have impacted consumers spending. Yet, if Nike unexpectedly shows it was able to weather the storm in China as well as other major global markets, we could see its price action moving higher upon release of the earnings.

EV stocks jump

Tesla, Inc (#TSLA) the electric vehicle producer gained very notably on Tuesday surging by +9.35%, ending the session at $711.11. On a year to date basis, Tesla is down -32.71% while its 52-week price range is between $615.50 and $1243.49. According to various sources some action taken by the Chinese government could potentially boost profitability across the EV supply chain and could have enacted some of the risk-on trading for the sector. More specifically, a report by CNBC claimed Chinese companies that produce raw materials for electric vehicle batteries, could be using forced labor to increase output. The news could imply the Chinese government maybe promoting the EV sector. On a separate note, another report by Bloomberg during the start of June stated China’s electric carmakers appear to be rebounding from lockdown-induced supply chain snarls and parts shortages, with at least four selling over 10,000 vehicles last month. This could increase demand for EV’s looking forward, increasing chances for higher sales. On a separate note, Tesla’s CEO Elon Musk stated in the past days that the company could be heading for a 10% reduction of the firm’s workforce. This move could be pointing out that Tesla may need to be more conservative with its budgets in the near future. Moreover, Tesla’s boss noted demand for EV’s remains very high.

#TSLA 1時間チャート

Tesla’s recent price action surged to test the (R1) 730.30 resistance but was unable to break above it, using the level as a ceiling in the previous session. For the time being, the price action is locked between the (R1) 730.30 resistance and the (S1) 680.00 support. If the trend is to continue moving upwards, the price action could be further driven towards the (R2) 765.00 line which is a two-week high price, while the (R3) 792.25 hurdle stands firm as our top level tested for more than a month. However, in accordance to the RSI indicator below our chart, the bullish interest could be losing some power after returning lower from a move to the 70 level. From a seller’s perspective the (S2) 649.85 support could prove interesting, while the (S3) 625.00 line which represents the lowest level Tesla’s share has fallen to so far in 2022, could be revisited. Even though Tesla remains in a rather long-term selling trend, we could say it is showing some stabilization in the past weeks, maintaining the sideways movement formed since May

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