- Wall Street gains in early Tuesday session
- Russell 2000 leads US gains
- BofA, Morgan Stanley and United Health Group earnings in the background
Wall Street is starting Tuesday's session in a good mood. The low-cap Russell 2000 index is adding more than 1.65% today, the technology Nasdaq is up 0.55%, and the broad S&P500 index is up 0.4%. Investors see reason for optimism in the latest retail sales data and Bank of America's better-than-expected earnings report. The retail sales data came in better than expected, which may ease fears that consumer demand is collapsing.
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US2000 is gaining more than 1.1% at the start of the cash session on Wall Street, thus breaking out to new local peaks not seen since January 2022. At the moment, the 2290-point zone remains the most important resistance point. On the other hand, the broken out peak zone at 2166 points may be considered a key support point. Source: xStation
Corporate news
Bank of America (BAC.US) is gaining more than 2.5% early in the session after the lender communicated that net interest income for the fourth quarter will be around $14.5 billion, ahead of analysts' estimates of $14.33 billion. You can find the bank's detailed results here.
Shares of Match (MTCH.US) rose 7% on news that activist investor Starboard Value has acquired an approximate 6.5% stake in the company. Starboard urges dating company to improve growth and profitability or consider going private.
Morgan Stanley (MS.US) released its Q2 2024 earnings report today ahead of the Wall Street session. The bank's shares started today's trading with a roughly 2% bearish price gap, even though the results were better than expected. However, the company's wealth management business lagged.
United Health Group (UNH.US) shares gained nearly 3.1% early in the session following the release of its second-quarter results for the year. The company reported better-than-expected earnings per share of $6.80 versus the expected $6.66. On the other hand, however, UNH is raising its estimates for a negative impact on earnings this year in the face of the hacking of its Change Healthcare unit in February. The company reiterated its full-year adjusted earnings forecast of $27.50 to $28.00 per share.
Analyst action
- Jefferies raises its target price for Goldman Sachs (GS.US) shares to $571 from $523 after the company's second-quarter profit more than doubled.
- Evercore ISI lowers its target price for Macy's (M.US) shares to $17 from $22 after the completion of buyout talks between the company, Arkhouse and Brigade Capital.
- Jefferies raises its target price on Netflix (NFLX.US) shares to $780 from $655, citing the company's robust content offering and the success of its password sharing initiatives.
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