Wall Street trades lower after upbeat Trade in Goods balance data❗
- US indices return to declines after Christmas break
- Tesla loses nearly 6% amid further production restrictions in China
US500 loses 0.6% and the market sellers look to push the main US benchmark to levels below 3,800 points. The US100 slips below 10,900 points and is trading 1.2% below the bar. The US30 is doing much better, trading down 0.2%. The bullish momentum sustained during the European session was negated after the reading of Trade in Goods balance. A huge drop in the US goods deficit, the largest since 2009, triggered a deterioration in market bullishness. Better goods deficit data could support U.S. GDP in Q4 2022, which could herald the Fed's maintaining a more hawkish stance.
US500 chart, D1 interval. Bulls are trying to hold support near the 23.6 Fibonacci elimination.
Tesla (TSLA.US) shares are losing nearly 6% amid concerns about demand for electric cars. Reuters reported that the automaker will suspend production of the Model 3 and Model Y, at its Shanghai plant from January 20 to 31, 2023, despite the easing of Covid restrictions in China. The reasons for Tesla's decision and whether the restriction will also extend to the production lines of other car models are not clear. Analysts remain cautious on the company's stock in the face of Elon Musk's involvement on Twitter.
