U.S. stocks ended mostly lower on Friday, pressured by technology and consumer discretionary shares. Investors are selling tech-related companies amid concerns about the rising interest rate, and according to the latest news, U.S. policymakers are ready to talk about reducing stimulus by tapering bond purchases.
Dallas Fed President Robert Kaplan said that tapering should start “sooner rather than later,” while Philadelphia Fed President Patrick Harker also confirmed Kaplan’s words on Friday.
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“Everyone knows the critical period is going to be here by fall, and I don’t see what benefit there is now of having all this excess liquidity out there. If it’s not creating runaway inflation, then it’s really not doing anything,” said Jim Paulsen, chief investment strategist at the Leuthold Group.
The U.S. reported that consumer prices rose sharply in April and drove the rate of inflation to the highest level in nearly 13 years. The U.S. Treasury Secretary Janet Yellen said that the FED might need to hike the interest rate soon, inflation has risen sharply, and it’s going to stay high for a while.
Many companies listed on Nasdaq posted better than expected first-quarter results, but recent comments from Treasury Secretary Janet Yellen created a sell-off. The U.S. stock market could weaken even more in the upcoming weeks, and probably it is not the best moment for investing in Comcast Corporation (NASDAQ: CMCSA), PayPal Holdings, Inc. (NASDAQ: PYPL), and Adobe Inc. (NASDAQ: ADBE).
Comcast shares continue to trade above $55
When we look at the chart above, we can see that this stock price has weakened from $59.11 below $53 this month, and the current price stands around $55. The critical support levels are $52.5 and $50; $60 and $65 represent the resistance levels.
If the price falls below the $50 support level, it would be a firm “sell” signal and maybe a trend reversal sign. On the other side, if the price jumps above $60, it would be a signal to trade Comcast shares, and the next target could be around $65.
Paypal shares have extended correction from their record highs
Paypal shares have extended correction from their record highs above $300 registered in February 2021, and the current share price stands around $250.
Technically looking, PayPal shares could fall even more in the upcoming days; still, if the price jumps again above $280, we have the open way to $300 resistance.
Adobe shares have found strong support above $450
The important support levels are $450 and $400; $500 and $525 represent the resistance levels. If the price jumps above $500 resistance, the next target could be around $510, but if the price falls below $400, it would be a firm “sell” signal and probably a sign of the trend reversal.
Summary
U.S. stocks ended mostly lower on Friday, and according to the latest news, U.S. policymakers are ready to talk about reducing stimulus by tapering bond purchases. The U.S. stock market could weaken even more in the upcoming weeks, and probably it is not the best moment for investing in Comcast Corporation, PayPal Holdings, and Adobe.
