-
US indices launch session slightly lower
-
ADP employment report beats estimates, attention turns to Fed
-
Bandwidth surges almost 50% after earnings
Wall Street indices launched cash trading slightly lower, following a downbeat trading in Europe so far today. However, scale of the drop is small with Dow Jones being top laggard (-0.3%) and Nasdaq being top performer (-0.1%). Traders should keep in mind that as a key event of the week - FOMC rate decision - will take place later today at 6:00 pm GMT, a mixed and somewhat muted trading may be ahead.
ADP employment report for October was released today at 12:15 pm GMT and turned out to be better-than-expected. Employment gain of 239k reported for the previous month was higher than 195k expected by the market. However, while a beat is welcome, details are not so bright. A bulk of this increase was reported in the leisure and hospitality segment (210k) and transportation (+84k) while in most other segments employment change was negative. However, market reaction to the release was short-lived as investors are waiting for a Fed decision scheduled for today evening (6:00 pm GMT)
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
US small-cap index Russell 2000 (US2000) continues to move higher following the break above the upper limit of a market geometry in the 1,800 pts area last week. However, advance stalled today yesterday in the evening after a failed attempt to break above the resistance zone ranging below 61.8% retracement of the August-September downward correction. A level to watch as the pullback deepens is a support zone in the 1,840 pts area, marked with the 50% retracement. A break below would mean painting the largest downward correction in the current upswing and may hint at a reversal of short-term trend. Source: xStation5
Airbnb (ABNB.US) launched today's trading lower following the release of a Q3 2022 earnings report. Company reported a 31% YoY jump in gross bookings, to $15.6 billion (exp. $15.4 billion). Net income increased from $0.83 billion in Q3 2021 to $1.20 billion in Q3 2022. This translates into EPS of $1.79 (exp. $1.47 billion). Revenue increased from $2.24 billion in Q3 2021 to $2.88 billion in Q3 2022 (exp. $2.85 billion). Free cash flow was 80% YoY higher at $960 million (exp. $1.1 billion). Airbnb also issued a Q4 revenue forecast of $1.86-1.88 billion, that was in-line with market expectations and marks a decrease from Q3 that is in-line with seasonal patterns.
Benefitfocus (BNFT.US) rallies after M&A news. It was reported that Voya Financial (VOYA.US) agreed to buy Benefitfocus in a $570 million deal. Voya will pay $10.50 per each Benefitfocus share, representing a 50% premium over Tuesday's closing price.
Estee Lauder (EL.US) drops following the release of calendar Q3 2022 earnings report and a disappointing forecast for the current quarter. Company reported EPS at $1.35, down from $1.88 reported a year ago and slightly above $1.31 expected by the market. Revenue was 10.5% YoY lower at $3.93 billion. Company issued a downbeat forecast for fiscal-2023 (calendar Q3 2022 - Q2 2023), saying it now expects net sales to drop 6-8% YoY. Previous guidance called for a 3-5% YoY sales growth.
Bandwidth (BAND.US) gains after reporting better-than-expected results for the quarter ended in September. Company reported EPS at $0.27, much above $0.03 expected by analysts and above last year's EPS of $0.24. However, adjusted EPS came in at negative $0.03. Revenue increased from $130.64 million in Q3 2021 to $148.33 million in Q3 2022, and was 5.5% higher than expected. Company expects Q4 2022 revenue to reach $146-148 million and EPS to come in at $0.03-0.05.
Share price of Bandwidth (BAND.US) leaped higher after release of earnings report. Stock launched today's trading with a big bullish price gap and is now trading almost 50% higher on the day. Shares cleared a downward trendline and tested a mid-term resistance zone in the $18.50 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.
