- Wall Street indices open lower
- Disappointing earnings from Tesla and Alphabet weigh on market sentiment
- US100 drops to 1-month low
- AT&T gains on better-than-expected Q2 subscriber additions
- Avantor jumps on S&P MidCap 400 addition
Wall Street indices launched today's trading lower, following release of disappointing earnings reports from Alphabet and Tesla yesterday after close of the cash session. S&P 500 opened 0.9% lower, Dow Jones traded 0.5% down at session launch, while Nasdaq slumped 1.5%. Small-cap Russell 2000 opened 0.5% lower.
US economic calendar for today includes some release like flash PMIs for July at 2:45 pm BST and new home sales data for June at 3:00 pm BST. However, neither of those tends to trigger large market moves on Wall Street. While flash PMIs are an important and a timely measure of sentiment within the economy, more attention is paid to ISMs when it comes to the United States.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation5
Tech sector is underperforming today as disappointing earnings releases from Alphabet and Tesla weigh on market sentiment. Nasdaq-100 futures (US100) has broken below the July 19 lows earlier today and are now testing the 19,650 pts support zone. The index is trading at the lowest level in a month. Should we see a decisive break below the 19,650 pts area, the 19,525 pts swing level may become the next target for sellers. However, a more important support zone can be found ranging around a psychological 19,000 pts level.
Company News
Tesla (TSLA.US) and Alphabet (GOOGL.US) launched today's trading 8% and 4% lower, respectively. Both companies reported disappointing Q2 earnings results yesterday after the close of Wall Street session.
AT&T (T.US) launched today's trading higher after reporting Q2 2024 results before opening of the Wall Street session. Company reported a 0.3% YoY drop in Q2 revenue to $29.80 billion (exp. $29.97 billion) and a 1.3% YoY increase in adjusted EBITDA to $11.3 billion (exp. $11.31 billion). Adjusted EPS was reported at $0.57, in-line with market expectations but lower than $0.63 report in a year ago quarter. However, company's share price gains today are driven by subscriber numbers - AT&T reported a net addition of 593 thousand new Wireless postpaid subscribers, while the market expected an addition of around 383 thousand. AT&T kept full-year outlook unchanged and still expects adjusted EPS to reach $2.15-2.25.
Visa (V.US) launched today's trading lower after releasing disappointing fiscal-Q3 earnings report yesterday after close of the market session. Visa reported a 9.9% YoY increase in fiscal-Q3 revenue to $8.90 billion (exp. $8.96 billion) and a 5% YoY increase in payment volume to $3.33 trillion (exp. $3.41 trillion). Adjusted EPS improved from $2.16 in fiscal-Q3 2023 to $2.42 in fiscal-Q3 2024 (exp. $2.43). Visa expects fiscal-Q4 and full-year fiscal-2024 revenue to increase by 'low double digits'.
Avantor (AVTR.US) opened higher after it was reported that the company will replace Quidelortho (QDEL.US) in S&P MidCap 400 index. Changes will become effective prior to the launch of Wall Street session on July 26, 2024.
Analysts' actions
- Estee Lauder (EL.US) upgraded to 'outperform' at RBC. Price target set at $131.00
- General Motors (GM.US) downgraded to 'equal-weight' at Morgan Stanley. Price target set at $47.00
Tesla (TSLA.US) launched today's trading with a big bearish price gap, erasing majority of gains made earlier this month. Plunge has been triggered by a disappointing Q2 2024 earnings report, release by the company yesterday after close of the Wall Street session. The nearest support zone to watch can be found in the $210 area. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
