- Wall Street indices open lower
- US500 drops below 50-hour moving average
- Cardlytics surges 60% after Q4 earnings
Wall Street indices launched today's trading lower, with S&P 500 dropping 0.5%, Nasdaq moving 0.7% lower, Dow Jones trading flat and small-cap Russell 2000 adding 0.3%.
US industrial production report for February was released at 1:15 pm GMT and showed an unexpected small increase in industrial production as well as bigger-than-expected increase in manufacturing production. However markets have largely ignored the release. Traders will also be offered flash University of Michigan data for March later today (2:00 pm GMT). Report is expected to show a small improvement in the headline index, driven by an uptick in Current Conditions subindex. Short-term inflation expectations are expected to tick higher.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Source: xStation5
S&P 500 futures (US500) climbed to fresh all-time highs yesterday, although it should be said that the bullish price gap yesterday was a result of the contract rollover. Taking a look at US500 chart at H1 interval, we can see that the index is pulling back today. Price slumped from the vicinity of the upper limit of the bullish channel and broke below the 50-hour moving average (green line). Two near-term support levels to watch can be found in the 5,180 pts and 5,153 pts area. However, a key support can be found in the 5,123 pts area and is marked with the lower limit of market geometry as well as lower limit of the bullish channel.
Company News
Adobe (ADBE.US) slumps following release of fiscal-Q1 2024 earnings (calendar December 2023 - February 2024). Company reported 11% YoY jump in revenue to $5.18 billion (exp. $5.14 billion), driven by 12% YoY jump in digital media revenue to $3.82 billion (exp. $3.79 billion). Remaining performance obligation increased 16% YoY to $17.58 billion (exp. $17.14 billion). R&D expenses increased 14% YoY to $939 million (exp. $893 million). Adjusted operating income was 16% YoY higher at $2.47 billion (exp. $2.40 billion), while adjusted EPS came in at $4.48 (exp. $4.38). While fiscal-Q1 results were better-than-expected, the company disappointed with fiscal-Q2 forecast. Adobe expects fiscal-Q2 revenue to reach $5.25-5.30 billion (exp. $5.31 billion) and fiscal-Q2 adjusted EPS to come in at $4.35-4.40 (exp. $4.38).
Fisker (FSR.US) rallies today. Company responded to recent media reports on possible bankruptcy filing, saying it is often working with outside advisers to help manage its business and develop strategies. Fisker also said that it is currently focused on raising capital and engaging in a strategic partnership with a major automaker.
Cardlytics (CDLX.US) rallies today after reporting Q4 2023 earnings. Company reported 8.1% YoY increase in revenue to $89.2 million (exp. $89.5 million) and an 18% YoY increase in average revenue per user to $0.53. Adjusted EBITDA was reported at $9.99 million, up from a $6.14 million loss in Q4 2022 (exp. $9.93 billion). Adjusted EPS of $0.14 was slightly higher than $0.12 expected. Cardlytics said that Q4 2023 capped a transformational year for the company, and it can now focus on best-in-class platform after cost structure was rebalanced.
Analysts' actions
- Rivian (RIVN.US) upgraded to 'overweight' at Piper Sandler. Price target set at $21.00
Cardlytics (CDLX.US) launched today's trading with a massive bullish price gap. Stock is trading around 60% higher on the day and breaks above the 50% retracement of the downward move launched in mid-September 2023. 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.
