Stock market accelerate down after MMM layoff plan

Dow Jones Industrial Averages futures pointed down 114 points before market open. The bearish sentiment mounting in the market after 3M (NYSE: MMM) reported weaker than expected Q1 result. The company logged an EPS of $2.23 vs. $2.49 expectation. Revenue comes out at $7.86 billion vs. $8.03 billion expectation. After the result, MMM plan to cut 2,000 jobs.

AIG, AMZN, BIDU, F, FSLR, INTC, MAT, SBUX set to report earnings after market close.

Asian & European Stock market

Asian stock market mostly lower today. Japan stock market up 107.58 points (+0.48%) to 22,307.58, China Shanghai Composite down 77.79 points (-2.43%) to 3,123.83, and Australia ASX 200 closed. European stock market scrambles lower after the failed merger between Deutsche Bank and Commerzbank. DAX Germany down 0.18%, UK FTSE down 0.36%, Euro STOXX600 up 0.17%.

Technical Analysis

Dow Jones Industrial Average (INDU)

DJIA hanging at the middle of 26,000 and an all-time high. No change to the direction, the index is waiting for news trigger to continue upward. Recent releases of earnings show better than expected result than miss in earnings or revenue. We think the index could continue crawl upside.

Yelp Inc (YELP)

The share prices traded inside a triangle pattern and will challenge the daily SMA 200 soon. If an upside breakout happens then it must happen with strong momentum and break SMA 200 for YELP to start a new uptrend. It is still possible for the share prices to get rejected by the top of the triangle and SMA 200. Earnings report on 15th May might become the breakout trigger.

Kohls Corporation (KSS)

KSS share prices projection is between two trendlines as shown on its daily chart. Recently, the share prices jumped above SMA 200 and tested the top trendline. There is a rejection and we might see KSS fall to test SMA 200. Traders could prepare near SMA 200 and the bottom trendline to enter long positions when there is a bullish reaction.