US open: Stocks Head Lower, Twitter, Big Tech in Focus

The Headlines on Twitter

Following a strong finish in the previous session and ahead of the commencement of large tech results, US markets are expected to start lower. Inflation has been a major subject this earnings season, and investors will be watching for clues about the impact of inflation on consumer spending when the numbers come in.

The statistics from the United States showed that durable goods rose 0.8 percent in March, up from 1.7 percent in February, but still falling short of the 1 percent expectation.

Looking forward Consumer confidence in the United States is predicted to improve to 108.00 from a 10-month low later this afternoon. This would be the first time in four months that it has improved, despite rising prices. Interestingly, despite a drop in consumer confidence, Americans have continued to spend, with retail sales remaining largely stable.

In TheBusiness World:

Twitter is up 0.2 percent in premarket trading as investors digest the news that Elon Musk has purchased the social media company after the board approved a $44 billion deal to take it private.

Elon Musk has already stated that he may not seek to monetize Twitter; instead, his goal is to make it a more transparent and fair platform for free speech.

In the next months, profits will pick up a notch, with large tech earnings taking center stage. Earnings growth is likely to slow in general. However, Microsoft is expected to disclose record earnings after the market closes today. Despite this, the stock has underperformed.

After the closing, Alphabet is also expected to report. On revenue of $68.13 billion, EPS of $25.63 is expected.

Where Does the S&P500 Go From Here?

The S&P500 hit resistance at the 100 sma at 4510, then dropped below the 50 sma, finding support at 4200. While trading out of oversold territory, the RSI is below 50, suggesting potential decline. 

A break below 4210/4200 could open the door to 4140 if the index breaks below it. Meanwhile, the extended lower wick on the candle to 4200 could stimulate buyers, implying that the price did not find much acceptance at these lower levels, therefore propelling the price higher. Buyers are attempting to break through resistance at 4280, with a move above exposing the 50 sma at 4400.