- Wall Street indices launch trading little changed
- US2000 tests upper limit of short-term trading range
- Joby Aviation gains on agreement with UAE authorities
Wall Street indices launched today's cash session little changed. S&P 500 traded flat at the session opening while Nasdaq and Dow Jones traded around 0.1% lower. Small-cap Russell 2000 was the outperformer with an over-0.5% gain.
Economic calendar for today's US trading session is empty. There are no macroeconomic data releases scheduled, but traders will hear from some Fed members, including Barkin (5:00 pm GMT) and Kashkari (6:00 pm GMT). Things get more interesting later into the week, with release of US CPI inflation data for January (Tuesday, 1:30 pm GMT), US retail sales for January (Thursday, 1:30 pm GMT) and flash University of Michigan index for February (Friday, 3:00 pm GMT).
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Source: xStation5
Small-cap Russell 2000 futures (US2000) are trading higher today. The index is currently trading over 5% above local low from February 5, 2024, and is making another test of the resistance zone ranging below the 2,025 pts handle, which serves as the upper limit of the ongoing short-term trading range. Textbook range of the breakout from this trading range is around 100 points. Having said that, should we see a break above 2,025 pts resistance zone, a stronger upward impulse may follow. In such a scenario, the 2,135 pts resistance zone will be the first target for the bulls. On the other hand, failure to break above the 2,025 pts could signal risk of the index pulling back towards the lower limit of the range in the 1,925 pts area.
Company News
Diamondback Energy (FANG.US) announced that it has reached an agreement to acquire Endeavor Energy Partners, the largest privately held oil and gas producer in the US Permian Basin, for around $26 billion in a cash-and-stock deal. Diamondback will fund the deal with $8 billion in cash and 117.3 million of its own shares. Following the completion of a deal, the combined entity would be the third-largest oil and gas producer in the region, trailing only Exxon Mobil (XOM.US) and Chevron (CVX.US).
Gilead Science (GILD.US) agreed to purchase CymaBay Therapeutics, US developer of an experimental liver disease drug. Acquisition price was set at $32.50 per share, representing an around-27% premium over Friday's cash closing price.
Diamondback Energy trades higher after announcing Endeavor Energy Partners acquisition. Stock opened above the 50-session moving average (green line) and is attempting to clear resistance zone in the $158-159 area, which marks the upper limit of the trading range. A break above may pave the way for an around-7% upward move. Source: xStation5
Joby Aviation (JOBY.US) trades higher today. US startup developing electric vertical take-off and landing aircraft (eVTOL) signed an agreement with Dubai's Road Transport Authority and received exclusive rights to launch and operate air taxi service in the United Arab Emirates for the next six years. Joby Aviation plans to launch the service in the country in early-2026. Joby Aviation is set to extend gains made on Friday after the US Federal Aviation Administration approved a certification plan for the company's propulsion system.
Analysts' actions
- PepsiCo (PEP.US) upgraded to 'buy' at Citi. Price target set at $195.00
- Rivian Automotive (RIVN.US) downgraded to 'equal-weight' at Barclays. Price target set at $16.00
- Lowe's (LOW.US) upgraded to 'overweight' at JPMorgan. Price target set at $265.00
- Corteva (CTVA.US) upgraded to 'buy' at Loop Capital. Price target set at $65.00
- XPO (XPO.US) downgraded to 'underweight' at Morgan Stanley. Price target set at $80.00
- Kyndryl Holdings (KD.US) upgraded to 'positive' at Susquehanna Financial. Price target set at $27.00
- Teva Pharmaceutical (TEVA.US) upgraded to 'overweight' at Piper Sandler. Price target set at $19.00
Joby Aviation (JOBY.US) trades higher after getting an exclusive regulatory approval to launch air taxi services in the United Arab Emirates. Stock launched today's trading above $6.20 resistance zone and is now trading at the highest level since January 2, 2024. The 200-session moving average (purple line) is a key near-term resistance to watch. Source: xStation5
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