- Wall Street indices open slightly higher
- US100 returns above 18,000 pts
- Earnings reports from Berkshire Hathaway, Domino's Pizza and Fidelity National Information Services
Wall Street indices launched the first trading session of a new week slightly higher. S&P 500 and Dow Jones opened 0.1% higher, Nasdaq gained around 0.3% while small-cap Russell 2000 dropped 0.3%. Economic calendar for today is slight - traders will be offered new home sales data for January at 3:00 pm GMT and Dallas Fed manufacturing index for February at 3:30 pm GMT.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appSource: xStation5
Taking a look at Nasdaq-100 futures (US100) chart at H1 interval, we can see that price broke to fresh all-time highs at the end of the last week, setting new intraday records. However, bulls failed to hold onto those gains and the index pulled back to the 17,935 pts support zone. Declines were halted there and an attempt to recover from recent losses can be observed today. US100 climbed back above 18,000 pts mark and is attempting to clear 18,015 pts swing area. If buyers manage to break above it, the next target can be found in the 18,060 pts area.
Company News
Berkshire Hathaway (BRKB.US) trades higher after reporting Q4earnings over the weekend. Company reported an almost-28% YoY increase in operating earnings, to $8.48 billion, while cash position increased from $157.2 billion at the end-Q3 to $167.6 billion at the end-Q4. However, company's CEO and chairman Warren Buffett said that days of very strong gains generated by Berkshire are over, and he now expects Berkshire Hathaway to do 'slightly better' than the average US corporation, although with less risk. We wrote about Berkshire Hathaway earnings in more detail here.
Alcoa (AA.US), US aluminum producer, trades lower after the company announced a $2.2 billion all-stock buyout proposal for Alumina, partner in Australian joint venture. Alumina's only asset is 40% stake in JV with Alcoa, and acquiring the partner will allow US company to increase its upstream exposure and simplify operations.
Shares of Alcoa (AA.US) are trading lower after company disclosed buyout proposal for Alumina. Stock is breaking below the $26.50 support zone today. Source: xStation5
Fidelity National Information Services (FIS.US) reported Q4 revenue at $2.51 billion, slightly below $2.52 billion expected. EPS of $0.94 was also slightly lower than expected ($0.95). Company expects Q1 revenue to reach $2.43-2.45 billion (exp. $2.46 billion) and Q1 ESPS of $0.94-0.97 (exp. $1.01). For the full-2024 company expects revenue to reach $10.10 billion (exp. $10.13 billion) and EPS to reach $4.66-4.76 (exp. $4.61).
Domino's Pizza (DPZ.US) reported 4.9% global retail sales growth in fiscal-Q4 2023 and 5.4% growth in full fiscal-2023. US same store sales were 2.8% YoY higher in fiscal-Q4 and 1.6% higher in full fiscal-2023. International same store sales increased just 0.1% YoY in fiscal-Q4 and were 1.7% in full-year. Income from operations increased 3.4% YoY in fiscal in fiscal-Q4 and 6.7% in full-year. Company's board authorized a 25% increase in dividend to $1.51 per share as well as a $1 billion for additional share repurchases.
Analysts actions
- Moderna (MRNA.US) downgraded to 'reduce' at HSBC. Price target set at $86.00
- Gap (GAP.US) upgraded to 'neutral' at JPMorgan. Price target set at $20.00
Domino's Pizza (DPZ.US) launched new week's trading with a big bullish price gap. The stock is trading above the $425 resistance zone and trades at the highest level since the beginning of 2022. 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.
