US Open: US100 down 1.1% as Nvidia 4% sell-off pressures semiconductors📉Cintas shares surge 9%

Overall market sentiment on Wall Street remains fragile, dragged down by losses in large-cap tech, with Nvidia, Tesla, and Taiwan Semiconductor leading the declines. Big Tech as a whole is under pressure. However, other sectors in the S&P 500 are providing some cushion. The solid economic data also dampens hopes of aggressive Fed rate cuts, suggesting they may be smaller or delayed.

• U.S. stock indexes opened lower on Wednesday. The US100 (Nasdaq) pulled back by nearly 1%, while the VIX rose by 2.5% as volatility crept higher.
• A sharp selloff hit the semiconductor and tech sectors, with Nvidia (NVDA.US) falling almost 4% due to Chinese chips energy regulations.
• Meanwhile, the oil & gas sector gained on rising crude oil prices. Cintas (CNTS.US) surged after the service company raised its full-year earnings and revenue guidance.
• Durable goods orders in the U.S. came in stronger than expected, giving the U.S. dollar a slight lift.
• GameStop (GME.US) saw renewed enthusiasm as the company received the green light to accumulate Bitcoin as a treasury asset.

U.S. Durable Goods Orders – February 2025:

• Durable Goods Orders: +0.7% m/m (Forecast: +0.2%, Previous: 0.0%)

• Core Durable Goods Orders (ex-transportation): +0.9% m/m (Forecast: -1.1%, Previous: +3.1%)

Source: xStation5

US100 Breaks Above EMA200, Then Pulls Back

The US100 briefly moved above the 200-day EMA (red line) before reversing lower. Despite days of higher buying volume, the index returned to a downward trend.

Source: xStation5

Company News

• Chewy (CHWY.US) rose 4% after the online pet product retailer posted fourth-quarter net sales that exceeded expectations.
• Dollar Tree (DLTR.US) gained 5% as the company announced the sale of its Family Dollar chain for approximately $1 billion to Brigade Capital Management and Macellum Capital Management—a decade after acquiring it.
• Freeport-McMoRan (FCX.US) fell more than 3%, unable to hold earlier gains, despite the Trump administration signaling that industrial metal tariffs could be introduced in weeks rather than months.
• GameStop (GME.US) surged over 10% after the struggling video game retailer, once a meme stock favorite, said its board had approved a plan to add Bitcoin to its treasury reserves.
• Global-e Online (GLBE.US) rose 3% after Morgan Stanley upgraded the software firm to "overweight," citing achievable growth targets.
• Humacyte (HUMA.US) dropped nearly 30% after the biotech firm offered 25 million shares at $2 each — roughly a 30% discount to its previous closing price.
• Playtika (PLTK.US) climbed 11% following a double upgrade from Bank of America, removing the last bearish analyst rating on the stock.
• Summit Therapeutics (SMMT.US) rose 5% after Citi upgraded the biotech firm to "buy," expressing stronger conviction in the company’s HARMONI-2 clinical trial.

Cintas Rides the Wave

Cintas Corporation shares gained around 4% on Wednesday after the company reported fiscal third-quarter results ahead of analyst expectations and raised its full-year outlook. Wall Street appreciates, that professional cleaning services company lifts expectations despite unfavorable macro data from the US.

• Earnings per share (EPS) came in at $1.13, surpassing the $1.05 estimate. Revenue rose to $2.61 billion, just above the $2.6 billion consensus.
• The company’s gross margin improved to 50.6% from 49.4% a year earlier, exceeding the projected 50%. This reflects efficient cost control and robust operational execution — a notable achievement in the services sector.
• For fiscal year 2025, Cintas raised its EPS guidance to $4.36–$4.40, from the prior $4.28–$4.34 range. Analysts had expected $4.33. Revenue guidance was also lifted slightly to $10.28–$10.31 billion.
• Management noted a $15 million cut at the top end of the revenue range due to unfavorable foreign exchange movements seen in Q3, with a similar impact expected in Q4.

Net interest expense for the year is projected at approximately $100 million, up from $95 million in FY 2024, due to higher variable-rate debt. The effective tax rate is forecast at 20.2%.

Cintas Corp (CNTS.US, D1 Interval) Cintas shares are trading above the 200-day exponential moving average (EMA200), signaling a potential return to the uptrend.

Source: xStation5