The US market has been in a downward trend for over a week. Weak inflation data has negatively affected investors' sentiment, and escalating tensions in the Middle East add downward pressure. However, Thursday's session might slow down the negative momentum. The earnings season so far has provided positive information about the financial conditions of companies, although predictions about the future remain neutral or negative. Optimistic data from the Philly Fed index pushed 10-year bond yields higher, bringing them back to around 4.6%, which could further exert selling pressure on US indices.
S&P 500 index in relation to the yield of 10-year US bonds. Source: Bloomberg Finance L.P.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile app
After the first hour of trading in the US, the S&P 500 index contract (US500) is experiencing minimal gains. It continues to remain in a downward price channel that started after achieving ATH in March 2024. Currently, the contract price is below the exponential moving averages (EMA20 and EMA50), and the indicator values themselves are narrowing their difference. This could act as an additional signal exerting selling pressure on the contract quotes. The first expected support level is at 5046.5 points, and if it is eventually broken, support can be expected around the psychological barrier of 5000 points. Source: xStation.
Stock news:
- Taiwan Semiconductor Manufacturing (TSM.US) experienced a -4% drop at the opening, despite beating market expectations. Both the company's first-quarter results and predictions for the second quarter of 2024 are above expectations. However, investors may be concerned about the lowered forecasts for semiconductor market growth (excluding memory semiconductors) in 2024 to 10% YoY.
- Duolingo (DUOL.US) gained approximately 7.5% at the opening after announcing that the company will join the S&P MidCap 400 index. The inclusion date is set for April 22th, and Duolingo will take the place of Cable One (which is also experiencing gains of around 3.5% today).
- Las Vegas Sands (LVS.US) is down approximately -7.5% at the opening after reporting its 1Q24 results. The company achieved $2.96 bln in revenue (+40% YoY), and adjusted EBITDA increased to $1.21 bln (+273% YoY), surpassing market forecasts of $1.19 bln. EPS rose to $0.75 compared to expectations of $0.62 and $0.28 in the previous year.
- Netflix (NFLX.US) will release its 1Q24 results after the market closes today. Forecasted revenue is $9.26 bln, EPS is $4.59, and the expected increase in new subscribers is 4.84 mln, which would represent a 176% YoY growth. The expected stock volatility after the report is 7%. Currently, investors are neutral at the beggining of the session before financial statement is released, and the stock rice is fluctuating between -1.7% and +0.5% from yesterday's closing price.
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.
