- Nasdaq leads gains on Wall Street
- Airbnb drops 14% in early session after quarterly results
- Lumen Technologies shares extend sizable gains
Markets in the US open Wednesday's cash session in a very good mood. Minutes after Wall Street opened, the Nasdaq gains 2%, while the S&P500 adds 1.5%. Markets are gaining bullish momentum after we saw a bump in "risk-on" markets earlier in the week.
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Create account Try a demo Download mobile app Download mobile appCurrent volatility seen on Wall Street. Source: xStation
US100
The Nasdaq index, represented by the US100 contract, is gaining 2.5% today and knocked out local peaks from yesterday's intraday session. The instrument bounced off a key support zone, which was the 200-day exponential moving average (gold curve on the chart). It is the maintenance of this zone in the medium term that could be an important element defining the possible maintenance of a sustained uptrend. In the medium term, on the other hand, an important resistance point may be the zone near 19,000 points (the area of the 100-day EMA, purple curve).
Source: xStation 5
Corporate news
Shares of Lumen Technologies (LUMN.US) surged 39% after full-year free cash flow forecasts were revised to $1.0 - $1.2 billion. Previously, estimates were as low as $100-$300 million.
Shares of Shopify (SHOP.US) rose 18% after the Canadian e-commerce company reported second-quarter revenue and earnings per share that exceeded analysts' expectations. Non-GAAP EPS of $0.26 was $0.06 higher than consensus. Revenues of $2.05 billion (+21.3% y/y) were $40 million higher. Gross sales volume ("GMV") rose 22% to $67.2 billion. Gross payment volume ("GPV") rose to $41.1 billion, or 61% of GMV processed in the quarter, compared to $31.7 billion, or 58%.
Airbnb Inc (ABNB.US) on Tuesday forecast third-quarter revenue below Wall Street estimates and reported a lower second-quarter profit as the company struggles with weakening demand from US customers. The company reported quarterly profit of $555 million, or 86 cents per share, compared with $650 million, or 98 cents per share, last year. It expects third-quarter revenue of $3.67 billion to $3.73 billion, below analysts' estimates of $3.84 billion. Shares lost more than 14% at the start of the session.
ANALYSTS' RECOMMENDATION
- Fox Corp (FOX.US): JPMorgan is raising its target price to $38 from $36 based on the company's solid fourth quarter results, driven by strong advertising revenue growth.
- Caterpillar Inc (CAT.US): Jefferies is lowering its target price to $430 from $440, after the company lowered its revenue guidance for the coming quarters.
Reddit Inc (RDDT.US): Piper Sandler raises its target price to $70 from $65, citing strong second-quarter revenue, improved EBITDA margins and strong user growth.
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